Cabinet allows fragmentation of industrial plots in Punjab

Indian Express

22-06-2025

Two years after the Punjab Vigilance Bureau alleged a scam in Punjab Small Industries and Export Corporation (PSIEC) that involved fragmentation and transfer of a 25-acre industrial plot into smaller plots, the Punjab Cabinet Saturday approved a comprehensive policy for the fragmentation and subdivision of industrial plots managed by PSIEC.
The government said that the policy aimed to promote industrial growth, particularly in IT and service sectors, while ensuring planned land used infrastructure sustainability across PSIEC-managed industrial estates, focal points, and growth centres.
Finance Minister Harpal Cheema, while addressing the media said that under the new policy, the industrial plots measuring 1,000 square yards or more are eligible for fragmentation, with each sub divided plot maintaining a minimum size of 400 square yards and a width-to-depth ratio not exceeding 1:3.
A fragmentation fee of 5 per cent of the current reserve price of the original plot will be charged, (50 per cent for the family members and legal heirs). A non-refundable processing fee of Rs 10,000 and additional FAR fees, where applicable, will also apply.
The applicants will have to adhere to the PSIEC's zoning regulations, building bylaws, and approved layout plans. Internal development works (roads, water supply, drainage) are age responsibility of the plot owner, with strict timelines for completion.
The applications will be processed within 21 working days through a scrutiny committee, with approvals granted by the additional managing director.
Services to previously fragmented plots, halted by PSIEC's board decisions in 2022 and 2023, will resume immediately as per applicable guidelines.
The policy caters to the demands of industrialists and plot owners as well as of prominent industry associations, including the Confederation of Indian Industry (CII), Mohali chambers of Industry and IT, and Mohali Industrial Association.
It addresses the need for smaller plots, particularly for the IT and service sectors, to promote efficient land use, attract investments and establish a structured, transparent mechanism for plot fragmentation and sub division.
The policy facilitates the optimisation of land usage, boosts operational efficiency, and supports project expansion by addressing long-standing demands from industrial stakeholders.
It applies to freehold plots of 1,000 square yards or larger, with sub divided plots maintaining a size of 400 square yards.
In 2023, the Punjab Vigilance Bureau had booked former minister Sham Sunder Arora and other accused for extending 'unfair advantage' to Gulmohar Township Company by allowing transfer and bifurcation of an industrial plot of 25 acres to the township company, by not following the rules.
However, in January this year, the Punjab and Haryana High Court quashed the FIR against him.
Cheema said that he previous government had allowed bifurcation of industrial plots when it was not a part of the policy, 'Now, we have brought a legal policy of bifurcation.'