Chandigarh, March 31 The Punjab government has approved industrial reforms, including amendments to allow easier conversion of leasehold industrial plots and sheds into freehold, Cabinet Minister Sanjeev Arora said on Tuesday.
Arora, who holds the portfolios of industries and commerce, investment promotion, power and local government, said the cabinet has also approved rationalisation of post-allotment services for freehold plot holders.
The reforms, finalized after consultations with industry stakeholders, aim to boost ease of doing business and create a transparent, investor-friendly industrial ecosystem, he added.
The minister said the conversion fee has been fixed at 5 per cent, while a 100 per cent stamp duty exemption will be provided for conversions completed by April 30, 2026.
He said the relief has been given in cases where the unearned increase clause is not applicable, and recurring charges in some cases have been replaced with a one-time fee.
Annual renewal charges for several services have also been abolished.
Pending transfer and conversion cases will be cleared in a time-bound manner, and a one-time stamp duty waiver has been introduced to encourage early conversion.
Arora said the documentation has been simplified, with bank letters being accepted in cases of mortgaged lease deeds.
Clarity has also been provided on the unearned increase clause.
He added that no unearned increase will be charged where the clause is not part of the title documents in family transfers, inheritance or death cases, or where plots were converted to freehold before the notification.
In a major step, services under the Punjab State Industrial Export Corporation (PSIEC) have been reclassified into mandatory and optional categories, with 18 services shifted to optional.
Notarised affidavits have been replaced with self-declarations, and more powers have been delegated to estate officers to speed up approvals.
The cabinet has also approved the Punjab Common Infrastructure (Regulation and Maintenance) Amendment Bill, 2026, to streamline industrial infrastructure management.
A uniform system will be implemented for the operation and maintenance of industrial areas, including focal points, estates and clusters.
Service charges in municipal areas will be merged with property taxes, eliminating double taxation and reducing the financial burden on industries.
Service charges will be collected through electricity bills by the Punjab State Power Corporation Limited.
Special Purpose Vehicles (SPVs), led by industrial stakeholders, will be set up for infrastructure management, with a defined governance structure and accountability mechanisms.
Under the financial framework, 90 per cent of funds will go to SPVs for maintenance and 10 per cent to the competent authority for infrastructure upgrades.
The government will have powers to audit and oversee SPVs and take action against non-performing bodies.
Arora said the reforms are aimed at reducing compliance burden, improving transparency and making Punjab a competitive and investor-friendly destination for industry.