Chief Minister Bhagwant Singh Mann-led government has fulfilled two out of the 12 promises made on June 12 during the launch of the "Udyog Kranti" in less than a month.
Chandigarh, 9 July 2025: Aimed at creating an investment and industry-friendly environment in the state, Chief Minister S. Bhagwant Singh Mann-led government has fulfilled two out of the 12 promises made on June 12 during the launch of the “Udyog Kranti” in less than a month.
The Mann government has provided significant relief to industrialists by issuing two notifications today related to the Industries & Commerce and Housing and Urban Development departments.
Immense employment opportunities can be created for our youth.
Industries and Commerce Minister Sanjeev Arora provided further details about this achievement. Housing and Urban Development Minister Hardeep Singh Mundian also shared more information at Punjab Bhawan here. They said that all promises made to industrialists during the Udyog Kranti Conclave by AAP supremo Arvind Kejriwal and Chief Minister Bhagwant Singh Mann will be fulfilled at the earliest. This will attract and establish maximum industries in the state. Immense employment opportunities can be created for our youth.
Sanjeev Arora, while divulging details of Industries and Commerce department notification, informed that our aim is to establish a progressive and equitable mechanism for the conversion of leasehold industrial plots/sheds to freehold. This conversion is under the jurisdiction of PSIEC. It maximizes the revenue of the state, fosters investor’s confidence, and improves the ease of doing business in the state.
Promises ; following remissions shall be allowed:
Cabinet Minister Sanjeev Arora highlighted that pre-requisites for conversion from leasehold to freehold plots in which the principal cost of plot along with applicable interest should be fully paid, all other applicable dues like extension fee, land cost enhancement(with applicable interest) etc should be paid up to date and plots should be free from all encumbrances like any other mortgage/lien, legal encumbrances etc.
Furthermore, Sanjeev Arora added that conversion fee for transfer from leasehold to freehold plots shall be 20% of Current Reserve Price(CRP) or Collector Rate whichever is higher. as per Promises The following remissions shall be allowed:
1) 50% remission(applicable rate 10% of CRP/Collector Rate whichever is higher) to original allottee/lessee where unearned increase clause exists in any title document.
2) 75% remission(applicable rate 5% of CRP/Collector rate whichever is higher) to allottees/lessees where unearned increase or related clause does not find mention in any title document. The conversion charges shall be shared as 90% to the state treasury and the remaining 10% to PSIEC.
3) Unearned increase shall not be separately levied and shall be subsumed within the above conversion fees on industrial plots upon conversion to freehold plots.
4) Transfer fee shall not apply to those who apply for conversion from lease hold to freehold plots under this policy.
5) Conversion of industrial plots from leasehold to freehold shall be permitted on approval of competent authority upon payment of conversion fee.
Cabinet has recently approved significant amendments to Punjab’s Conversion Policy
While sharing details pertaining to the notification related to the Housing and Urban Development Department, S. Hardeep Singh Mundian said that the Cabinet has recently approved significant amendments to Punjab’s Conversion Policy. These changes allow industrial plots to be used for hospitals and hotels. They can also be used for industrial parks and other approved purposes. Previously, the conversion policy was introduced in 2008, 2016 and 2021. However, Industrial Associations had raised objections to certain restrictive conditions of the policy brought in 2021. He mentioned that Chief Minister S. Bhagwant Singh Mann held meetings with industrialists to understand ground realities and gather feedback. Later, a committee was formed by the government reviewed the industrialists’ requests and proposed changes applicable to freehold plots.
The Cabinet Minister said that under the amended policy, a conversion charge of 12.5 percent of the reserved price of industrial plots will be applicable. Similarly, a policy for converting leasehold industrial plots and sheds managed by PSIEC to freehold has also been approved.
The policy also seeks to reduce litigation
He informed that these plots and sheds were originally allotted on a leasehold basis. Complex clauses regarding conversion were included. These clauses caused difficulties in property transactions. He said the purpose of the new policy is to streamline the management of industrial plots. It aims to enhance ease of doing business. The policy also seeks to reduce litigation and uncertainty among allottees.
He said that as per Promises the revised guidelines, specific uses are now permitted. These include Commercial, Hotel, Hospital, Banquet Hall, EWS/Industrial Worker Housing, Hostel/Rental Housing, Office, and Institutional uses. These are allowed with defined road width requirements, minimum plot sizes, and corresponding conversion charges. Conversion charges range from 10% to 50% of the industrial reserve price. They vary depending on the land use type. The Cabinet Minister added that commercial conversions require a 100-feet-wide road. They also need a minimum plot size of 4000 sq. yds. These conversions attract a 50% charge. The building controls include Ground Coverage, FAR, Height, and Parking. These will continue to be governed by the Punjab Urban Planning and Development Building Rules, 2021. Amendments may be made from time to time.
