Industrialists across Punjab have voiced strong opposition to a new non-refundable upfront fee introduced under the state's 2026 industrial guidelines. The policy mandates that new investors must pay either Rs 1 lakh or 0.5% of their fixed capital investment, whichever is higher, at the time of registration to avail fiscal incentives.
Industry Leaders Demand Rollback
The Federation of Industrial and Commercial Organisation, led by president Gurmeet Singh Kular, along with other representatives, has appealed to Chief Minister Bhagwant Mann and Industry Minister Sanjeev Arora for an immediate rollback of the clause. They argue that charging a fee before any support is provided contradicts the spirit of the 'Invest Punjab' initiative, which aims to attract investors rather than impose additional taxes.
Impact on Small and Medium Enterprises
The upfront financial burden is particularly harsh on micro, small, and medium enterprises (MSMEs), which are already grappling with tight liquidity. Critics point out that while the government plans to spread out incentives over 10 to 15 years, it is demanding immediate payment from the industry. This is the first time such a fee has been introduced; the previous 2022 policy had no such charge.
Business leaders noted that neighboring states do not impose similar upfront costs, putting Punjab at a competitive disadvantage. The federation emphasized that the fee shifts all risk onto the investor, as the payment is non-refundable regardless of whether the project receives final approval.
Call for Refundable Fee
Industry bodies have urged the government to either scrap the clause entirely or make the fee refundable to restore investor confidence. They warn that the policy could deter new investments and stifle the growth of small businesses in the state.
