CHANDIGARH, 26 June —To promote industrial growth and employment in Punjab, the state cabinet on Wednesday approved a series of policy decisions aimed at improving infrastructure, simplifying regulations, and attracting investment. The decisions were announced after a cabinet meeting chaired by Chief Minister Bhagwant Mann.
Addressing a press conference, Cabinet Ministers Aman Arora, Tarunpreet Singh Saundh, and Hardeep Singh Mundiya said the reforms will offer a major boost to industrial confidence and job creation across sectors, especially micro, small and medium enterprises (MSME), IT, and services.
One of the key decisions is a relaxation in the Change of Land Use (CLU) rules. Under the revised norms, industrial plots between 1,000 and 10,000 square yards can now be utilised for commercial buildings such as hospitals, hotels, worker hostels, and educational institutions with greater ease.
“This has been a long-standing demand from industrialists, and we are glad to have finally addressed it,” said Minister Aman Arora, adding that the move is expected to unlock land use flexibility, encourage private development, and create new employment hubs.
Additionally, the cabinet has approved the conversion of industrial plots larger than 40,000 square yards into designated ‘Industrial Parks’, a measure expected to benefit large-scale investors and developers while also generating significant employment for the youth.
In another landmark decision, the government will now allow the conversion of leasehold industrial properties into freehold, giving permanent ownership rights to industrialists. Officials said this shift is expected to bolster investor confidence and spur further expansion of industries.
“The leasehold-to-freehold policy is not just about legal clarity,” said Arora. “It’s a vote of confidence in our entrepreneurs. The move is expected to generate approximately ₹1,000 crore in state revenue while reducing red tape.”
The ministers said these steps are part of Punjab’s broader effort to enhance the ‘Ease of Doing Business’, attract new investments, and retain existing industries by addressing their core concerns.
Officials said further announcements related to industrial support policies, including digital facilitation and single-window clearance systems, are expected in the coming weeks as Punjab prepares to showcase itself as an emerging industrial destination in North India.
