How Punjab plans to show it means business

UDYOG KRANTI translates into industrial revolution, or an overhaul of the way business is conducted and the industry operates — in Punjab’s context, where it often struggles to operate. The AAP government says its new Udyog Kranti scheme is designed to reverse the state’s diminishing business prospects and make it an integral part of the India growth story. At a recent Invest Punjab summit in Mohali, Chief Minister Bhagwant Mann and party convenor Arvind Kejriwal rolled out the ambitious scheme. They see it as a game-changer, but how it is implemented and the industry reacts is the big question.

The core element of AAP’s industrial and business push is to fast-track the regulatory clearances and business-related service applications of all micro, small and medium enterprises, large units, and institutional investors — including IT units, hotels, hospitals and educational institutions.

The ‘FastTrack Punjab’ portal promises to grant approvals for all industrial proposals within 45 days, and auto-approval if delayed even by a day.

“It will give a good boost to the industry and service sector. Getting approval of building plans and fire no-objection certificate is a big hassle. The new third-party approval and online system will come as a huge relief,” says RS Sachdeva, former chairman, PHD Chamber of Commerce and Industry. According to him, the land-use conversion policy and clubbing of plots will benefit big industrial cities. “Mohali can become another Gurugram in the coming years.”

Industrialist Amit Thapar, chairman of CII’s Export Task Force, Northern Region, says these “realistic and industry-oriented reforms” will boost industrial growth in Punjab. The guaranteed business approvals “will end the harassment and bring down the cost of setting up industry, though it remains to be seen as to how the reforms are presented in the formal notification”. Thapar plans to invest Rs 637 crore in the state.

Punjab Industries Minister Tarunpreet Singh Sond views the fast-track portal as a “revolutionary step to provide a conducive environment for the industry to grow”. The government, he says, is pumping in money on infrastructure upgradation in the industrial urban estates.

“A single-entry-exit window means investors have to just apply and provide documents, and all clearances would follow in a time-bound manner,” he assures.

A unified regulatory mechanism, the single-window system, rechristened as the ‘FastTrack’ portal, is a single-entry-single-exit system that promises a seamless journey through nearly 50 regulatory clearances and 148 service applications. It now also provides time-bound accountability of officials.

For industrialists, while the biggest policy change is the shift in the government’s mindset of adopting a pragmatic industry-friendly approach, some issues of concern remain. Primary among these is the need to boost infrastructure and provide uninterrupted quality power supply.

Sachdeva says the industrial policy for sub-division of plots should also have the same online process as the FastTrack Punjab portal. “Instead of Rs 125-crore limit, it should be Rs 50 crore for a three-day approval, as many industrialists invest in instalments and not in one go,” he adds.

simplifying the process

Officials in the Punjab Bureau of Investment say at the heart of the initiative to improve the business environment is the new application process called the circle revenue officer (CRO) report. It aims to cut red-tapism and inter-departmental procedural delays. It allows investors to obtain the report that verifies land ownership, revenue records, and zoning feasibility before major investment decisions are made.

It empowers investors with official land-use classification before applying for environmental or construction approvals, cutting down on the risks of land disputes, rejections, or regulatory mismatch at a later stage.

Compared to previous industrial policies, officials in the investment bureau say the new initiative guarantees business approvals within 45 days. All clearances will be given within 45 working days — there will be no exceptions (except technically justified power utility applications). At least 83 per cent of the regulatory clearances have notified timelines of under 30 working days.

The entire system has been built around a legally binding escalation protocol. Each regulatory application is now hardcoded with a strict Service Level Agreement (SLA), capped at a maximum of 45 working days. Officials involved in tweaking and refining the industrial policy say the reforms include clubbing and de-clubbing of industrial plots to address long-standing demands from industrial stakeholders to merge or divide contiguous plots to optimise land usage, boost operational efficiencies and support project expansion.

To address a major concern about the poor availability of skilled labour in the state, the Punjab Development Commission, in coordination with the academia and industrial sector, is working on skill-set courses that would enable trained workforce to roll out of industrial training institutes and other such institutes. The state has already announced a Rs 250-crore industrial incentive package and another Rs 300 crore to revamp its 52 industrial hubs.

Any government scheme by its very nature attracts a bit of cynicism, based largely on past experience of similar initiatives by different governments. In the challenge lies the opportunity, say AAP leaders. Punjab would be keenly watching.

Focus on infra upgradation

There are 52 industrial focal points in the state, including 26 under the Local Government Department. The remaining are with PSIEC. We are spending Rs 300 crore on the upgradation of basic amenities. The formal notification of the fast-track portal would be done in the coming days, as some changes in the Udyog Kranti initiative required Cabinet clearance.  — Tarunpreet Singh Sond, Punjab Industries Minister

Key reforms

— Deemed Approval System ensures that all necessary clearances for setting up or expanding businesses are granted within 45 working days. Previously, clearances could take 60 to 120 days, causing uncertainty.

— Unlike earlier when investors had to navigate multiple departments, FastTrack Punjab is a single-window portal for regulatory approvals.

— The Right to Business Act has been expanded, allowing projects with up to Rs 125 crore in plant and machinery investment (Rs 200 crore, including land and buildings) to receive in-principle approvals.

— The government has introduced self-certification for building plan approvals and structural stability certificates, eliminating the need to rely on a limited number of approved experts. Fire safety norms have been simplified, allowing architect-prepared fire safety drawings to be accepted.

— The digitally delivered Land Feasibility Certificate will be issued within 15 working days by revenue officials.

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