HISTORIC DECISION FOR PUNJAB’S INDUSTRIAL SECTOR:APPELLATE AUTHORITY CONSTITUTED TO REINSTATE CANCELLED PLOTS – SOND
Face2News/Chandigarh
The Punjab Small Industries and Export Corporation (PSIEC) has taken a significant step toward enhancing land use efficiency with the approval of a comprehensive policy for the clubbing and de-clubbing of plots. Addressing a press conference at Punjab Bhawan, Industries and Investment Promotion Minister Tarunpreet Singh Sond announced the launch of a broad policy allowing clubbing and de-clubbing of industrial plots.
He said that the decision aims to address the long-standing demand from industrialists and property owners for a structured and transparent mechanism for clubbing and de-clubbing of plots under PSIEC. This decision addresses long-standing demands from industrial stakeholders to merge or divide contiguous plots to optimize land usage, boost operational efficiencies, and support project expansion. The policy applies to all plots under PSIEC’s jurisdiction, including those within focal points and industrial estates, excluding booths and sheds.
He said that as per notification, applications for clubbing or de-clubbing will be considered if the plots are owned by the same entity, i.e. the ownership of the proposed plots to be clubbed or de-clubbed shall be the same, and all outstanding dues are cleared at the time of application. The proposed clubbed plots should be on the same pattern i.e. freehold or leasehold and shall be have executed lease deeds/conveyance deeds (As applicable). A fee of one percent of the current reserve price of the total area of plots, or a maximum of ₹50 lakh, whichever is lower, will be applicable.
The minister clarified that de-clubbing will only be permitted in accordance with the original layout plans, and all approvals will be subject to building by-laws, zoning regulations, and environmental compliance. Sond asserted that this policy will pave the way for greater efficiency and optimal land use in the state’s industrial zones.
Tarunpreet Singh Sond also informed about the formation of an Appellate Authority for reinstating/re-alloting cancelled plots allotted by the Punjab Small Industries and Export Corporation (PSIEC).
He stated that under various earlier schemes, numerous industrial plots were cancelled due to reasons such as failure to commence production within the stipulated period, violation of zoning norms, or default in payment of instalments. To address this issue and support industrial development, the Punjab Government under the leadership of Chief Minister Bhagwant Singh Mann has constituted this Appellate Authority.
The Appellate Authority, notified on May 7, 2025, will provide a dedicated platform for affected allottees to appeal against cancellations and seek reinstatement of their plots. A comprehensive policy regarding clubbing and de-clubbing of industrial plots under PSIEC was notified on May 19, 2025.
Sond explained that approximately 700 plots were previously cancelled, and despite repeated requests from allottees, the earlier restoration policy, which was valid until March 31, 2022, had lapsed without resolution. The government has now responded to these demands by introducing a structured mechanism to offer fair hearings and transparent resolutions.
He further emphasized that the Appellate Authority will not only reduce unnecessary litigation but also ensure procedural clarity and support units facing genuine difficulties. The affected allottees now have the opportunity to file appeals for restoration of their plots by September 30, 2025. In future cases, appeals can be filed within six months of the date of cancellation.
Sond expressed confidence that these historic decisions will create new opportunities for entrepreneurs and businesses in Punjab’s industrial, commercial, and residential sectors. He reiterated the state government's firm commitment to promoting industrial growth and assured continuous efforts to take Punjab’s industry to greater heights.