Notification on conversion of leasehold to freehold plots evokes mixed response

Punjab Industry and Commerce Minister Sanjeev Arora has brought a policy, regarding which a notification has also been issued, to convert leasehold industrial plots/sheds into freehold plots and sheds by paying a certain amount to the PSIEC. It would not only foster the investor’s confidence and improving the ease of doing business but will also earn a good revenue to the state exchequer.

However, the policy has evoked a mixed response. At the same time, the industry maintains that a much bigger relief was expected from the state government on the issue.

Rahul Ahuja, convener, Apex Chamber, said though the industry got a relief, it was not as per expectations of the industry.

“Till 2023, we used to pay Rs 450 per sq yard to the government the rate for the same work, then the government increased the rates to Rs 7,500 per sq yard. And now in the recent notification, the rates are imposed as Rs 1,500 per sq yard. Though we are happy that from Rs 7,500, the rates are reduced to Rs 1,500 but still rates are on the higher side,” he said.

Another industrialist, SC Ralhan, who also served as the FIEO president, said it was an additional financial burden on the industry.

“When banks have no problem in providing loans to industrialists, whether a property was freehold or on lease, and they (banks) only wanted NOC, why the financial burden imposed on the industry?

“In case the state government wants to provide a relief to the industry, it should start issuing NOCs. When we are happy with plots on lease because we are getting loans on the basis of NOC by the government, why should we pay more for getting the same loans,” Ralhan said.

The industrialists want government to provide more relief to the industry in the freehold plot issue.

“Why the state government wants to earn revenue from it when there was nothing written about it at the time of allotting the industrial plots,” asked another industrialist, adding that because of the clause, the industry was not able to sell and purchase and do further expansions.

Ludhiana