Punjab Cabinet Eases Factory Setup Norms with Self-Certification for Building Plans
Approval Process Streamlined; Clearance Time Reduced from 45 to 30 Days
Chandigarh, April 24, 2025 – In a significant step aimed at enhancing the investment climate in Punjab, the Cabinet led by Chief Minister Bhagwant Singh Mann has approved a major reform allowing third-party or self-certification for factory building plan approvals.
The decision was taken during a meeting of the Council of Ministers held at the Chief Minister’s official residence in Chandigarh on Wednesday.
According to a spokesperson from the Chief Minister’s Office, the move will simplify the process governed by the Factories Act, 1948, under which factory building plans were previously approved following stringent byelaws—often causing delays and added costs, particularly for units outside municipal limits.
To streamline this procedure, the Cabinet has introduced a provision allowing registered architects to certify factory building plans in accordance with prevailing building byelaws. These certified plans will be subject to re-verification by the Labour Department, focusing on compliance with land use norms, ground coverage, setbacks, building height, road width, and parking requirements, among other criteria.
While final approvals will still be granted under the Factories Act, the use of certified third-party or self-certified plans is expected to significantly reduce bureaucratic bottlenecks and cut the plan clearance timeline from 45 days to 30 days.
The reform is part of the government’s broader push to make Punjab an investor-friendly destination by reducing red tape and improving ease of doing business.