The Punjab Cabinet, approved significant amendments to the state’s land conversion and industrial policies, allowing greater flexibility in land use and improving governance structures across departments on June 26.
One of the key changes includes the green light to convert industrial plots into alternative uses such as hospitals, hotels, industrial parks, and other approved categories. This comes after the Council of Ministers reviewed concerns raised by industrial bodies about restrictions in the 2021 conversion policy.
A special committee examined feedback from stakeholders and suggested updates to the rules, specifically for freehold plots. Under the revised policy, a conversion fee of 12.5% of the industrial reserve price will be applicable.
The Cabinet also endorsed a new policy that allows the conversion of leasehold industrial plots and sheds into freehold ownership. This is primarily aimed at plots administered by the Punjab Small Industries and Export Corporation. Officials say the step will help simplify estate management, improve business operations, reduce legal disputes, and boost state revenue.
The Cabinet approved amendments to the MSE Facilitation Council Rules, 2021, under the MSME Development Act, 2006. Currently, these councils operate under the respective district deputy commissioners, but delays in settling payment-related awards were noted.
To resolve this, a new mechanism will allow the recovery of delayed payment awards as arrears under the Punjab Land Revenue Act, 1887, aligning with central government guidelines.
