Punjab Government Unveils Major Reforms for Industrial Plot Conversion
The Punjab government has approved significant reforms to its existing policy to streamline the conversion of industrial plots and sheds from leasehold to freehold status. Industries Minister Sanjeev Arora announced these changes on Tuesday, aiming to enhance the ease of doing business and foster a more transparent industrial ecosystem.
Key Changes in the Amended Policy
The revised policy introduces a fixed conversion fee of 5% and offers a 100% stamp duty exemption for all conversions completed by April 30, 2026. This move is designed to incentivize industrial units to transition to freehold ownership, providing greater flexibility and security in property management.
Simplified Documentation and Delegated Powers
To expedite the conversion process, the government has simplified documentation requirements. Notarised affidavits have been replaced with self-declarations, and bank letters are now sufficient for properties with mortgaged lease deeds. Additionally, approval powers have been delegated to estate officers to ensure the time-bound disposal of pending cases, reducing bureaucratic delays.
Exemptions and Service Reclassification
Under the new policy, unearned increase charges will no longer apply to family transfers, inheritance, or cases where the clause is absent from title documents. Furthermore, the state government has rationalized post-allotment services for freehold plot holders by reclassifying 18 services from mandatory to optional, offering more control to industrialists.
Addressing Overlapping Costs and Infrastructure Maintenance
The Punjab Common Infrastructure (Regulation & Maintenance) Amendment Bill, 2026, stipulates that service charges will now subsume property tax in municipal areas, effectively ending double taxation for industrial units. These charges will be collected through electricity bills via PSPCL to ensure transparency. Moreover, the maintenance of industrial focal points and clusters will be transitioned to industry-led Special Purpose Vehicles (SPVs). Managed by a seven-member elected committee of allottees, these SPVs will receive 90% of collected funds for local upkeep, with the remaining 10% reserved for broader infrastructure upgrades.
Stakeholder Consultations and Future Impact
Minister Arora noted that these reforms were finalized after extensive consultations with industry stakeholders. The changes are expected to boost the ease of doing business, create a self-sustaining industrial ecosystem, and attract more investments to Punjab. By streamlining processes and reducing costs, the government aims to position the state as a more competitive destination for industrial growth.
