Punjab industrial reforms approve leasehold to freehold conversions with 5 per cent fee

The Punjab government cleared a set of industrial reforms that changed how industrial plots and sheds were managed. Cabinet Minister Sanjeev Arora said leasehold properties could be converted to freehold with simpler rules. The cabinet also approved changes to post-allotment services for existing freehold plot holders. The measures were intended to improve ease of doing business.

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Arora, who held industries and commerce, investment promotion, power and local government portfolios, said the package followed talks with industry stakeholders. The reforms focused on clearer processes, fewer recurring payments, and quicker decisions. The government said the goal was a more transparent system for investors. The cabinet decisions also covered industrial infrastructure management across Punjab.

Punjab industrial reforms on leasehold to freehold conversion

Arora said the conversion fee was set at 5 per cent. A 100 per cent stamp duty exemption was offered for conversions completed by April 30, 2026. The government also introduced a one-time stamp duty waiver to support early conversion. Arora said the relief applied where the unearned increase clause did not apply.

The cabinet decisions replaced some recurring charges with a one-time fee. Arora said annual renewal charges for several services were removed. Pending transfer and conversion cases were to be settled within set timelines. Documentation was simplified, and bank letters were accepted for mortgaged lease deeds. The government also issued clearer guidance on the unearned increase clause.

Arora said no unearned increase would be charged in certain situations. These included family transfers, inheritance, and death cases, when the clause was absent in title documents. The same applied where plots were converted to freehold before the notification. The minister said these changes reduced disputes and delays. The government aimed to make conversion rules predictable.

Punjab industrial reforms for PSIEC services and approvals

Under the Punjab State Industrial Export Corporation PSIEC, services were split into mandatory and optional categories. Arora said 18 services moved into the optional group. Notarised affidavits were replaced with self-declarations. More authority was given to estate officers to speed up approvals. The government said these steps reduced paperwork after allotment.

Punjab industrial reforms under the 2026 infrastructure amendment bill

The cabinet also cleared the Punjab Common Infrastructure Regulation and Maintenance Amendment Bill, 2026. The bill aimed to simplify how industrial infrastructure was managed. A single system was planned for operating and maintaining industrial areas. This included focal points, estates, and clusters. The government said consistent rules would help industries across locations.

Service charges in municipal areas were to be combined with property taxes. The change aimed to end double taxation and lower costs for industries. Service charges would be collected through electricity bills by the Punjab State Power Corporation Limited. The cabinet said this method improved collection and reduced separate billing. The system was linked to infrastructure upkeep needs.

Special Purpose Vehicles SPVs were to be created for infrastructure management, led by industrial stakeholders. A governance structure and accountability rules were set for these bodies. Under the funding plan, 90 per cent would go to SPVs for maintenance. The remaining 10 per cent would go to the competent authority for upgrades.

The government kept powers to audit and monitor SPVs. It could also act against SPVs that did not perform. Arora said the reforms were meant to reduce compliance burden and improve transparency. The cabinet decisions also aimed to strengthen Punjab’s position for industrial investment. The measures covered both land services and infrastructure upkeep.

With inputs from PTI