Punjab Cabinet clears policy to split industrial plots over 1,000 sq yards
The Punjab Cabinet has given a major relief to the industry by approving a policy allowing fragmentation of big industrial plots across Punjab State Industries and Export Corporation (PSIEC)-managed industrial estates, focal points and growth centres.
The policy existed since 2005 when it was approved by the Board of Directors of the PSIEC, registered as a company under Companies Act. However, as it lacked state government’s approval, a major controversy had erupted three years ago when a 25-acre industrial plot in Mohali was fragmented into 125 plots and sold off.
The Cabinet has now decided to immediately resume the services, halted by the PSIEC Board of Directors in 2022 and 2023, to previously fragmented plots under prescribed norms.
Industrialists had been demanding a policy framework on the fragmentation of plots for some time. The issue was discussed at various “Sarkar Sanatkar Milni” programmes of the ruling party with industrialists.
The Council of Ministers, led by Chief Minister Bhagwant Mann, today approved the policy that will allow all industrial plots, over 1000 square yards in size, to be fragmented into smaller plots with a width to depth ratio of 1:3 (for proper zoning) and sold off, or divided amongst various shareholders.
The owners will now have to pay a fragmentation fee of five per cent of the current reserve price of the original plot, though in case of division/fragmentation of plot amongst legal heirs, the fee will be reduced by 50 per cent. While the PSIEC collected the entire fragmentation/bifurcation fee earlier, 40 per cent of this will now go to the state government.
Fragmentation/bifurcation will only be allowed for plots that fall along a 40-foot-wide road. The applicants will have to adhere to all zoning regulations of the PSIEC. “The size of the fragmented plot cannot be less than 400 square yards. Those who get these plots will have to run an industrial unit on these for a minimum of five years. This is a forward-looking policy, aimed at promoting industrial growth especially in IT and ITeS sectors,” state Industry Minister Tarunpreet Singh Sond told The Tribune.
The Cabinet took three other industry friendly decisions. It allowed amendment to the Punjab Fire and Emergency Services (Validity of Fire Safety Certificate) Rules, allowing extension of the timeframe for the re-issuance of fire safety certificates from present one year to three or five years.
It also approved amendments to The Punjab Factory Rules, 1952, enabling self-certification of construction plans of factories by any civil/structural engineer with five years or more experience. The Cabinet further decided to increase the contribution made by both employers and labourers to the Punjab Labour Welfare Fund.
Other key decisions
Nod to 500 posts in Jails Department to recruit assistant jail superintendents, warders and matrons
Ex post facto nod to a Cabinet sub-committee headed by state FM to oversee the ‘War on Drugs’ programme
Amendments to the PRTPD Act, allowing the Chief Secretary to become chairperson of all urban development authorities, earlier headed by CM
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