PUNJAB NEWS : In a decisive step toward creating a business-friendly and investment-driven atmosphere, the Bhagwant Singh Mann-led Punjab government has delivered on two of the 12 commitments made during the launch of the Udyog Kranti initiative on June 12—within just a month.
To provide major relief to the industrial sector, two significant notifications were issued by the Industries & Commerce and Housing and Urban Development departments.
Speaking at Punjab Bhawan, Industries and Commerce Minister Shri Sanjeev Arora and Housing and Urban Development Minister Shri Hardeep Singh Mundian emphasized that every promise made at the Udyog Kranti Conclave by AAP National Convenor Shri Arvind Kejriwal and Chief Minister Bhagwant Singh Mann will be fulfilled swiftly to attract more industries to Punjab and generate large-scale employment opportunities.
Ease of Doing Business: Leasehold to Freehold Conversion Simplified
Minister Sanjeev Arora shared details about a key Industries and Commerce Department notification focused on easing the process of converting leasehold industrial plots and sheds under PSIEC to freehold. The goal is to enhance investor confidence, streamline property management, and improve the ease of doing business while boosting state revenue.
Key conditions for conversion include:
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Full payment of the plot’s base cost and applicable interest.
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Settlement of all outstanding dues like extension fees and land cost enhancement.
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Plots must be clear of any legal or financial encumbrances.
The conversion fee will be 20% of the Current Reserve Price (CRP) or Collector Rate, whichever is higher, with the following remissions:
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50% remission (10% rate) for original allottees/lessees where an unearned increase clause exists in the title deed.
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75% remission (5% rate) where no such clause exists.
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No separate levy of unearned increase; it is included in the conversion fee.
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No transfer fee for those converting under this policy.
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Conversion will be permitted after approval from the competent authority upon payment.
Expanded Land Use Options for Industrial Plots
Housing and Urban Development Minister Hardeep Singh Mundian outlined amendments approved by the Cabinet to Punjab’s Conversion Policy, which now permits the use of industrial plots for hospitals, hotels, industrial parks, and more. This change responds to objections raised by industrial bodies over restrictive clauses in the 2021 policy.
CM Bhagwant Mann held consultations with industrialists to better understand their concerns. A government-formed committee later proposed reforms based on this feedback.
As per the updated guidelines:
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A conversion charge of 12.5% of the reserve price will apply.
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Leasehold-to-freehold conversion for PSIEC-managed plots and sheds has also been approved.
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The aim is to remove complexities, reduce legal disputes, and simplify transactions.
Permissible new land uses include commercial establishments, hostels, hospitals, banquet halls, office spaces, EWS/worker housing, and institutional setups. Specific conditions regarding road width, minimum plot size, and applicable charges apply. For instance:
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Commercial use requires a 100-foot-wide road and a minimum plot size of 4,000 sq. yards, with a 50% conversion fee.
Building norms like FAR, height limits, parking, and coverage will continue to be governed by the Punjab Urban Planning and Development Building Rules, 2021, or any future amendments.