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The Punjab government has introduced key industrial reforms to simplify leasehold-to-freehold conversions and reduce compliance burden. A fixed 5 per cent conversion fee and full stamp duty exemption for applications completed by April 30, 2026 aim to clear pending cases and encourage faster conversions. The policy also removes certain charges, simplifies documentation, and speeds up approvals. Alongside, amendments in infrastructure management rules address double taxation and improve maintenance through industry-led bodies. These steps are expected to improve ease of doing business and support industrial expansion in the state.
The Punjab government has approved a set of industrial reforms focused on easing the conversion of leasehold industrial plots and sheds into freehold, along with reducing procedural requirements for businesses. The cabinet cleared these changes as part of its broader effort to make industrial policies simpler and more practical for investors and existing units. Advertisement
Under the revised policy, the conversion fee has been fixed at 5 per cent of the applicable value. To encourage quicker adoption, the state has offered a 100 per cent exemption on stamp duty for cases completed by April 30, 2026. This step is expected to help clear a large number of pending conversion applications that were delayed due to high costs and procedural issues.
The government has also addressed long-standing concerns related to the unearned increase clause. It clarified that such charges will not apply where the clause is not part of the original allotment terms. Relief has also been extended in cases of family transfers, inheritance, and death. In addition, properties that had already been converted to freehold earlier will not face any retrospective charges, bringing clarity to many disputed cases.
Several financial and compliance-related changes have been introduced to reduce the burden on industrial units. In some cases, recurring payments have been replaced with a one-time charge, while annual renewal fees for multiple services have been removed. This is expected to lower operational costs and make processes more predictable for businesses.
The policy also simplifies documentation requirements. Notarised affidavits have been replaced with self-declarations, reducing paperwork. For mortgaged properties, bank-issued letters will now be accepted instead of additional approvals, which should help speed up processing. Estate officers have been given more authority to approve applications, with a focus on time-bound clearances.
Under the Punjab State Industrial Export Corporation system, post-allotment services have been rationalised. Around 18 services have been shifted from mandatory to optional, allowing industrial plot holders more flexibility in managing their operations without unnecessary approvals.
Alongside these changes, the cabinet has approved amendments to industrial infrastructure management rules through the Punjab Common Infrastructure (Regulation and Maintenance) Amendment Bill, 2026. A uniform framework will now be followed for maintaining industrial areas, including focal points, estates, and clusters, even those outside notified zones.
One of the key changes includes merging service charges with property tax in municipal areas, which removes the issue of double taxation. These charges will now be collected through electricity bills, making the system more streamlined and easier to manage for industrial units.
To improve maintenance and accountability, Special Purpose Vehicles will be formed with active participation from industry stakeholders. These bodies will manage local infrastructure, with 90 per cent of collected funds used for maintenance within the same area and 10 per cent set aside for larger infrastructure improvements. The government will continue to monitor these entities through audits and oversight mechanisms.
These reforms follow earlier efforts by the state to improve ease of doing business, including faster approvals and policy simplification. The current changes focus more on resolving practical issues faced by existing industrial units, especially those related to land ownership and infrastructure management.
Source PTI
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