Punjab government introduces OTS scheme to boost industrial growth

In a significant relief for industrialists, the Punjab Cabinet, led by Chief Minister Bhagwant Singh Mann, has approved a historic One-Time Settlement (OTS) scheme to resolve over four decades of pending cases and provide long-awaited relief to the business community.

A decision in this regard was taken during a meeting of the Council of Ministers at the Chief Minister’s official residence.

OTS Scheme to Resolve Industrial Disputes

A spokesperson from the Chief Minister’s Office stated that the OTS scheme aims to help industrialists settle disputes related to enhanced land costs and delayed principal payments, ensuring a fair and transparent resolution process.

Around 1,145 industrialists across Punjab will benefit from this initiative, allowing them to clear dues and reinvest in their businesses, fostering economic growth and job creation. These businesses employ thousands of people, and the financial relief will help stabilize operations, prevent closures, and create new employment opportunities.

The scheme will cover defaulter plot holders whose original allotment was issued on or before January 1, 2020.

Industrial plots, sheds, and residential plots within Industrial Focal Points developed by the Punjab State Industries Export Corporation (PSIEC) will be included, making it a broad-based initiative for industrial revival. Under this scheme, defaulters can settle their dues with a nominal 8% simple interest rate and benefit from a 100% waiver of penal interest.

Second Chance for Plot Holders

Even those whose allotments were previously canceled can reclaim their plots by settling outstanding dues, providing businesses with a second chance to restart and grow.

The scheme will help industries alleviate financial burdens and legal complexities, enabling them to expand and modernize operations. Revenue collected through this initiative will be reinvested into industrial infrastructure, such as improving focal points and developing new industrial parks, strengthening Punjab’s industrial ecosystem.

To ensure a smooth application process, a special virtual help desk will be set up by PSIEC to assist industry promoters in availing of the scheme. This initiative will reinforce Punjab’s reputation as an industry-friendly state, attract new investments, and create an environment conducive to business growth.

The last date to avail of the scheme is December 31, 2025, providing ample time for defaulters to clear outstanding dues. This move is expected to boost industrial growth, strengthen Punjab’s economy, and reaffirm the government’s commitment to supporting businesses and job creation.

Approval for Industrial Park Layout Surrender Policy

The Cabinet has also approved a policy allowing the surrender of the layout plan for industrial park projects. This will be permitted if the promoter deposits all outstanding statutory charges as levied by the Competent Authority at the time of project approval. The decision addresses the lack of a policy regarding the surrender of layouts under the Industrial Park Policy dated June 19, 2019.

Amendments to PPSC (Condition of Service) Regulation Act

In another key decision, the Cabinet approved amendments to Clause 5(1) of the Punjab State Public Service Commission (Condition of Service) Regulation Act, streamlining the process for appointing the chairman and members of the commission.