Major relief to industry as Punjab Cabinet approves two OTS schemes

“A total of 1,145 industrialists across Punjab will benefit from this scheme, allowing them to clear their dues and reinvest in their businesses, leading to economic growth and job creation. These industrialists collectively employ thousands of people, and the financial relief provided by the OTS scheme will further stabilise businesses, prevent closures and lead to new employment opportunities,” said the spokesperson.

Earlier, addressing the media, Industries Minister Tarunpreet Singh Sond said the Cabinet has approved the proposal to bring two OTS schemes for industrialists. “There are 52 focal points, spread over 8,000 acres of land and 14,000 industrial plots in the state,” he added.

Under the first OTS scheme, the plot holders, who did not pay their land enhancement charges, would not need to pay penal and compounding interests on their dues, the minister said, adding “they can pay simple interest at the rate of 8 per cent to clear their dues”.

Under the second OTS scheme, Sond said the industrialists, who were allotted plots but could not pay their principal amount because of any reason, can now pay the charges with 8 per cent simple interest. “They don’t need to pay compounding and penal interests,” he said, adding the two schemes will continue till December 31, 2025.

The scheme will apply to defaulter plot holders whose original allotment was issued on or before January 1, 2020, ensuring that long-pending cases are addressed effectively.

Industrial plots, sheds and residential plots in Industrial Focal Points developed by Punjab State Industries Export Corporation (PSIEC) across Punjab will be covered under this scheme, making it a broad-based initiative for industrial revival, said the spokesperson.

As per the scheme, the government will provide a significant financial relief measure by allowing defaulters to clear dues with a nominal simple interest rate of 8 per cent along with a 100 per cent waiver of penal interest.

Even plot holders whose allotments were cancelled will now have a chance to get them back by paying their dues, giving businesses a second chance to restart and grow.

The revenue collected through this scheme will be reinvested into industrial infrastructure, including improving focal points and developing new industrial parks, boosting Punjab’s industrial landscape, said the spokesperson.

A special virtual help desk will be set up by PSIEC to assist industry promoters in availing of the scheme, ensuring a smooth and hassle-free process for applicants. “This initiative will enhance Punjab’s reputation as an industry-friendly state, attract new investments, and create an environment conducive to business growth,” the spokesperson added.

Rajya Sabha MP Sanjeev Arora, who too addressed the media with Sond, said he had earlier engaged with three major industry associations in Punjab to compile a list of pressing issues. He said that industrialist “unanimously” demanded an OTS scheme for pending cases of disputes related to enhanced land costs and pending payments.

He said he reached out to AAP national convenor Arvind Kejriwal, Chief Minister Bhagwant Mann, and Sond “regarding critical issues raised by the industrial sector”, and they agreed to address the same.

He said that the OTS schemes would benefit small and medium enterprises the most. “They faced challenges in obtaining loans and approvals from banks due to pending dues…Our government took a historic step by implementing the OTS scheme at a flat interest rate of just 8%,” Arora said.

The Rajya Sabha MP further said, “Industry representatives have calculated that they will save Rs 2,160 per square yard due to this initiative. This benefit will directly strengthen their financial position and improve their balance sheets”.

He also commended the establishment of two dedicated counters under a single-window system saying it will “eliminate bureaucratic hurdles and simplify the process” for industrialists.

Industry bodies CII Punjab and PHD Chamber of Commerce and Industry welcomed the state government’s move to announce the OTS scheme. CII Punjab chairman Amit Jain said the initiative will undoubtedly help industries continue their operations uninterrupted, and by clearing past dues, it will allow businesses to focus on expansion and innovation.

Meanwhile, the cabinet also gave a nod to the policy to allow the surrender of the layout plan of an industrial park project, provided that the promoter deposits the outstanding dues of statutory charges as levied by the competent authority at the time of approval. The decision has been taken due to the non-availability of a policy regarding the surrender of the layout of projects developed under the Industrial Park Policy.

The cabinet also gave its consent to amend Clause 5(1) of the Punjab State Public Service Commission (Condition of Service) Regulation Act for the appointment of the chairman and members of the commission.