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Time of India
04-07-2025
- Business
- Time of India
Hefty fees by PSIEC have halted pre-1992 plot deals, rues industry
Ludhiana: Transfers of industrial land under Punjab Small Industries & Export Corporation (PSIEC) policy impose a hefty "unearned profit" charge on plots allotted before 1992. The policy mandates a payment of Rs 7,500 per sq yard, up from the older and far lower rates, whenever these plots change hands. The revision, introduced under PSIEC's changed transfer framework, continues to stall transfer of plots. Industry stalwarts say it effectively blocks legitimate sales and transfers. PSIEC had revised the fee schedule, which was ostensibly introduced to capture the "unearned increase" in land values over decades, aiming to curb speculative transfers. However, local business associations argue that the blanket Rs 7,500/sq yard charge, roughly 16 times the older rate, has been burdensome deterring genuine transfers. Industrial plot sales across Punjab have essentially screeched to a halt, with investors freezing activity amid uncertainty. Stakeholders demand a return to a sustainable, graduated fee structure consistent with past norms and economic realities. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với sàn môi giới tin cậy IC Markets Tìm hiểu thêm Undo Industrialists say the policy threatens MSMEs of the city's core industries, many of whom require smooth transfers for growth, exit planning, or family succession. As most of the focal points, except those under Phase VIII, are of the pre-1992 era, it is affecting most of them. Rahul Ahuja, former CII Punjab chairman and convener of the Apex Chamber of Commerce & Industry, Punjab, said, "This move has virtually stalled all transactions. It must be rolled back to the previous structure, if not something better." Ashpreet Sahni, former chairman of CII Ludhiana, called for a complete withdrawal. "The unearned profit policy must be withdrawn and replaced with a transparent, rational, industry-friendly approach. It was being said that the matter would be looked into and resolved after elections. Hopefully, it will be done now," he said. They said the transfer fees in the 1990s were as low as Rs 450 per sq yard compared to the current demands highlighting the sharp increase. The industry is optimistic that an urgent policy correction would be brought in, now that Sanjeev Arora is Punjab's new industries minister.
Hindustan Times
27-06-2025
- Business
- Hindustan Times
Punjab cabinet approves industrial plots' conversion
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.
Time of India
26-06-2025
- Business
- Time of India
Punjab rejigs conversion policy, industrial plots can be used to build hotels, hospitals
Chandigarh: In a rejig aimed at benefitting industry in Punjab, the state cabinet on Thursday approved amendments in the conversion policy, allowing altering use of industrial plots to build hospitals, hotels, and industrial parks at a conversion charge of 12.5% of the industrial reserve price. A new policy permitting the conversion of leasehold industrial plots and sheds into freehold ones was also cleared. Briefing media persons after the cabinet meeting, new and renewable energy minister Aman Arora said, "Industrial plots of 1,000 square to 4,000 square yards can now be used for commercial activity, banquet halls, rental housing, office space or housing, institutes, or industrial workers' housing, depending on various categories and the width of roads. It will give relief to developers and investors in the state. " Accompanied by industries minister Tarunpreet Singh Sond, Arora added that the cabinet also decided to allow the conversion of industrial plots of up to 40,000 yards into industrial parks, which will include 60% industrial, 30% residential, and 10% commercial space in freehold. An official spokesperson added that earlier conversion policies were introduced in 2008, 2016, and 2021. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 점점 커지는 모공들, 헛돈 쓰지말고 집에서 이렇게 해보세요 미그닥 Undo However, industrial associations raised concerns about certain restrictive conditions in the 2021 policy. 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 those managed by Punjab Small Industries & Export Corporation Limited (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. Hitting out at the previous govts, Arora said when the policy was previously followed with a clause of 50% 'unearned increase', only four applications were received. At the same time, transfer was allowed by asking the applicants to pay the dues later. "The state govt will generate additional revenue of around Rs 1,000 crore for the conversion of plots from leasehold to freehold. Besides, the state govt will also get a substantial amount by way of conversion fees for industrial plots," he pointed out.
Indian Express
22-06-2025
- Business
- Indian Express
Cabinet allows fragmentation of industrial plots in Punjab
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.'
Time of India
17-06-2025
- Business
- Time of India
Ludhiana's industry backs AAP candidate Sanjeev Arora, hailing his role in solving long-pending issues.
Ludhiana: As the Ludhiana West by-election campaign intensifies, (AAP) candidate Sanjeev Arora has received a significant boost from the city's industrial community, with major trade associations and industry leaders throwing their weight behind the businessman-turned-politician. Tired of too many ads? go ad free now Industry voices say Arora's deep familiarity with the manufacturing sector and his role in addressing long-standing policy issues have earned him wide respect across Ludhiana's business corridors. "There is very little representation of industry in government, and Arora is one of our own," said Badish Jindal, president of the World MSME Forum. He credited Arora with resolving key issues such as the one-time settlement (OTS) scheme for Punjab Small Industries and Export Corporation (PSIEC) focal points, VAT refunds, and reducing the approval time for setting up new industries to 45 days. Narinder Bhamra, president of the Fasteners Manufacturers Association of India, highlighted Arora's effectiveness in representing industrial interests. "This is a democracy, but industry overwhelmingly supports Arora because of his clarity and commitment," Bhamra said. "Alongside Punjab industry minister, Tarunpreet Singh Sond, he advocated for us in ways we hadn't seen before." Vinod Thapar, chairman of the Knitwear Club, hailed Arora as a bridge between business and politics. "The OTS of PSIEC focal points had been stuck for 28 years. Governments came and went, but it took Arora to resolve it. That speaks volumes," he said. Rahul Ahuja, former chairman of CII Punjab and convener of the Apex Chamber of Commerce, praised Arora's track record on power sector issues and infrastructure bottlenecks. "His passion for resolving industrial concerns is matched by the industry's passion for supporting him," Ahuja said. The endorsements come at a crucial time for Arora, as Ludhiana's bypoll race tightens, with industry solidarity emerging as a potential game-changer.
