SIMPLY PUNJAB: Industrial plots in Punjab’s focal points auctioned off at all-time high

Land in Punjab has always been a contentious issue due to the state’s largely agrarian economy, where land remains a vital asset. Consequently, the cost of land in the state has increased significantly over the past few years, affecting agricultural, commercial, residential, and industrial land across cities like Mohali, Ludhiana, Jalandhar, Amritsar, and even smaller cities like Pathankot.

The recent auction of industrial plots by Punjab State Industries and Export Corporation (PSIEC) demonstrates this surge in land prices. Despite expectations of a good response, the auction’s success exceeded predictions, with 15 plots in Mohali fetching over three times the reserve price. The plots were sold for Rs 1.50 lakh to Rs 1.65 lakh per square yard, compared to the reserve price of Rs 39,000 to Rs 42,900 per square yard. This increase is primarily due to the scarcity of industrial plots in the state’s focal points, where demand far exceeds supply.

During the auction, held between May 26 and June 16, 50 out of 260 plots were successfully auctioned. In addition to Mohali, industrial plots in Pathankot and Goindwal Sahib received a good response. Industrialists, however, express concerns that high land prices may deter new investors, citing increased input costs and poor civic conditions in the 52 focal points managed by PSIEC and local municipal bodies.

RS Sachdeva, former chairperson of PHDCCI, said that the high land prices in Punjab were always a deterrent for new investors. “It increases their input costs manifold. The high prices definitely have an impact on the viability of the unit,” he added.

PSIEC officials claim that plans are underway to improve civic amenities in all focal points, aiming to create an ideal environment for investors. “You will start seeing the changing face of these focal points soon,” said a senior officer. The success of this auction also highlights the shifting economic landscape in Punjab, with Mohali emerging as a key economic hub and Pathankot showing promise despite not being a major industrial zone previously.

In contrast, Ludhiana, traditionally the industrial capital, saw no takers for its 12 plots, including those in Hi-Tech Valley. Similarly, 19 plots in Raikot near the Ludhiana airport did not attract bidders. PSIEC officials attribute this lacklustre response to the ongoing Ludhiana West election and are optimistic about a better response in the next round of auctions.

Punjab