Photo Source; Babushahi Bureau
Major relief for industrialists as Punjab approves Freehold Conversion policy
Harshabab Sidhu
Chandigarh, July 9, 2025 – In a major step to boost industrial development, Punjab Ministers Sanjeev Arora and Hardeep Singh Mundian on Wednesday announced key policy reforms, including the long-awaited approval for converting leasehold industrial plots into freehold.
Addressing the media, Sanjeev Arora said that this reform fulfills one of the promises made during the Industrial Revolution launch event held in Mohali on June 12, where Chief Minister Bhagwant Mann and AAP National Convener Arvind Kejriwal had pledged to resolve 12 major industrial issues.
“Of these, two major issues have now been resolved,” he stated.
Under the revised policy, industrial plots under the management of Punjab Small Industries and Export Corporation (PSIEC) that were earlier allotted on a release-hold basis can now be converted to freehold.
A comprehensive policy has been introduced for this conversion.
To support industrialists, a 50% discount has been announced on the standard 20% conversion charges. The charges will be calculated based on either the collector rate or the reserve price—whichever is higher.
For industrial plots falling under older Non-Auction Rate (NAR) categories, only 10% of the higher rate (collector or reserve price) will be charged for conversion. In cases where the plots have already been sold, only 5% of the higher rate will be applicable.
“This was a 40-year-old demand of the industry. It will not only bring transparency but also reduce litigation, streamline estate management, and enhance the ease of doing business in Punjab,” Arora emphasized.
Additional reforms include amendments to the transfer policy and new provisions allowing issuance of guarantees for industrial projects—moves aimed at increasing investor confidence and administrative efficiency.