Punjab cabinet approves industrial plots' conversion

Hindustan Times

27-06-2025

The Punjab cabinet on Thursday approved significant amendments to the state's conversion policy, enabling the conversion of industrial plots into hospitals, hotels, industrial parks, and other permitted uses. Industrial associations had raised concerns about certain restrictive conditions in the 2021 policy. In response, a committee reviewed the requests from industrialists and proposed a set of changes applicable to freehold plots. As per the revised policy, a conversion charge of 12.5% of the industrial reserve price will be levied. (HT File)
A decision to this effect was taken during a meeting of the Council of Ministers held at the chief minister's official residence.
Disclosing this here on Thursday a spokesperson from the chief minister's office said that earlier conversion policies were introduced in 2008, 2016, and 2021. However, industrial associations had raised concerns about certain restrictive conditions in the 2021 policy. In response, a committee reviewed the requests from industrialists and proposed a set of changes applicable to freehold plots. As per the revised policy, a conversion charge of 12.5% of the industrial reserve price will be levied.
Approval for conversion of leasehold industrial plots/sheds to freehold
The cabinet also approved a policy for converting leasehold industrial plots and sheds into freehold ones, particularly for plots managed by PSIEC. These plots and sheds, originally allotted on a leasehold basis, included complex clauses related to transfer, leading to complications in property transactions. The new policy aims to streamline industrial estate management, enhance ease of doing business, and reduce litigation and uncertainty among allottees. Additionally, this conversion is expected to generate additional revenue for the state.
Amendments to MSE Facilitation Council Rules–2021
The cabinet approved amendments to the MSE Facilitation Council Rules – 2021 under the MSME Development Act, 2006. At present, district-level micro and small enterprises facilitation councils function under the chairpersonship of the respective deputy commissioners. However, delays were noted in the execution of awards related to delayed payments under the Act. In line with Government of India guidelines, a mechanism will now be created for the recovery of such awards as arrears of land revenue under the Punjab Land Revenue Act, 1887.
The cabinet approved amendments to the service rules governing junior engineers (JE) (Group-B) in the Punjab water resources department. While 15% of JE posts are reserved for promotion, 10% of these are filled from among junior draftsmen, surveyors, work mistris, earth work mistris, and others. Now, canal patwaris and revenue clerks who hold the required qualifications (i.e., a diploma or degree in civil, mechanical, or electrical engineering from a recognised institution) and relevant experience will also be eligible under this quota.
Approval to merge various directorates under dept of finance
The cabinet approved the merger of various directorates under the department of finance. The directorates of small savings, banking & finance, and lotteries will be merged and renamed as the directorate of small savings, banking, and lotteries. DPED and DFREI will be merged and renamed as the directorate of public enterprises and financial resources. The directorates of treasury & accounts, pensions, and NPS will be merged into a single entity: Directorate of treasury & accounts, pension, and NPS. This restructuring is expected to save the state approximately ₹ 2.64 crore annually.
The cabinet also gave consent for the creation of new posts for the state SNA treasury established in Chandigarh, in accordance with Government of India guidelines.