In a move aimed at fostering industrial growth and providing greater flexibility to industrialists, the Punjab Government has framed and notified rules allowing the clubbing and de-clubbing of adjoining vacant industrial plots. This decision is expected to facilitate brownfield expansion and optimize land use across the state’s industrial zones.
The newly framed rules enable industrialists to merge adjacent vacant industrial plots into a single larger unit, helping streamline operations and support expansion projects. Conversely, these rules also permit the division of previously clubbed plots back into separate entities according to the original layout plan of the Industrial Focal Point. This means that industries struggling to utilize large land parcels can de-club and sell off unused portions to maximize their financial viability.
Punjab Industries Minister Tarunpreet Singh Sond said, “It has been decided to levy a fee of 1 per cent of the current reserve price of the total area of the plot, or a maximum of Rs 50 lakh, whichever is lower, to facilitate clubbing or de-clubbing.” He emphasized that the policy would promote optimal land usage and operational efficiency.
The rules will apply to about 14,000 industrial plots spread across 52 Focal Point areas in Punjab, 26 of which are managed by the Punjab State Industries and Export Corporation (PSIEC) and the remaining 26 overseen by local bodies. While the provision for clubbing and de-clubbing existed in PSIEC’s building bylaws, formal rules had not been framed until now.
The decision follows demands from industrialists across Punjab, who pressed for greater flexibility during the state government’s Sannatkar Milni outreach programmes.
Industry leaders have welcomed the move. RS Sachdeva, former chairman of the PHD Chamber, called the decision “much-awaited” and said it would enable industries to undertake faster brownfield expansions and better utilize vacant plots in Focal Points, giving a significant boost to industrial growth.
Additionally, Minister Sond announced the formation of an appellate authority to address grievances related to the reinstatement or re-allotment of cancelled plots by PSIEC. About 700 plots had been cancelled earlier, and despite requests from allottees, the previous restoration policy had expired on March 31, 2022, without resolution. The new authority aims to provide a platform for resolving these pending issues.
This industry-friendly policy is expected to create a more conducive environment for industrial development in Punjab by making land management more flexible and responsive to current business needs.
