CABINET MINISTERS SANJEEV ARORA AND HARDEEP SINGH MUNDIAN SHARE INFORMATION
Punjab Newsline, Chandigarh-
Aimed at creating an investment and industry-friendly environment in the state, CM Bhagwant Singh Mann-led government has fulfilled two out of the 12 promises made on June 12 during the launch of the "Udyog Kranti" in less than a month.
The Mann government has provided significant relief to industrialists by issuing two notifications today related to the Industries & Commerce and Housing and Urban Development departments.
While sharing further details about this achievement at Punjab Bhawan here, Industries and Commerce Minister Sanjeev Arora and Housing and Urban Development Minister Hardeep Singh Mundian said that all promises made to industrialists during the Udyog Kranti Conclave by AAP supremo Arvind Kejriwal and Chief Minister Mann will be fulfilled at the earliest so that maximum industries can be attracted and established in the state and immense employment opportunities can be created for our youth.
Sanjeev Arora, while divulging details of Industries and Commerce department notification, informed that our aim to establish a progressive and equitable mechanism for conversion of leasehold industrial plots/ sheds to freehold under the jurisdiction of PSIEC which maximizes the revenue of the state while fostering investor’s confidence and improving the ease of doing business in the state.
Cabinet Minister Arora highlighted that pre-requisites for conversion from leasehold to freehold plots in which the principal cost of plot along with applicable interest should be fully paid, all other applicable dues like extension fee, land cost enhancement(with applicable interest) etc should be paid up to date and plots should be free from all encumbrances like any other mortgage/lien, legal encumbrances etc.
Furthermore, Sanjeev Arora added that conversion fee for transfer from leasehold to freehold plots shall be 20% of Current Reserve Price(CRP) or Collector Rate whichever is higher. The following remissions shall be allowed:
1) 50% remission(applicable rate 10% of CRP/Collector Rate whichever is higher) to original allottee/lessee where unearned increase clause exists in any title document.
2) 75% remission(applicable rate 5% of CRP/Collector rate whichever is higher) to allottees/lessees where unearned increase or related clause does not find mention in any title document. The conversion charges shall be shared as 90% to the state treasury and the remaining 10% to PSIEC.
3) Unearned increase shall not be separately levied and shall be subsumed within the above conversion fees on industrial plots upon conversion to freehold plots.
4) Transfer fee shall not apply to those who apply for conversion from lease hold to freehold plots under this policy.
5) Conversion of industrial plots from leasehold to freehold shall be permitted on approval of competent authority upon payment of conversion fee.
While sharing details pertaining to the notification related to the Housing and Urban Development Department, S. Hardeep Singh Mundian said that the Cabinet has recently approved significant amendments to Punjab's Conversion Policy, allowing industrial plots to be used for hospitals, hotels, industrial parks and other approved purposes. Previously, the conversion policy was introduced in 2008, 2016 and 2021. However, Industrial Associations had raised objections to certain restrictive conditions of the policy brought in 2021. He mentioned that Chief Minister S. Bhagwant Singh Mann held meetings with industrialists to understand ground realities and gather feedback. Later, a committee was formed by the government reviewed the industrialists' requests and proposed changes applicable to freehold plots.
The Cabinet Minister said that under the amended policy, a conversion charge of 12.5 percent of the reserved price of industrial plots will be applicable. Similarly, a policy for converting leasehold industrial plots and sheds managed by PSIEC to freehold has also been approved.
He informed that these plots and sheds were originally allotted on a leasehold basis, which included complex clauses regarding conversion, causing difficulties in property transactions. He said the purpose of the new policy is to streamline the management of industrial plots, enhance ease of doing business and reduce litigation and uncertainty among allottees.
He said that as per the revised guidelines, specific uses such as Commercial, Hotel, Hospital, Banquet Hall, EWS/Industrial Worker Housing, Hostel/Rental Housing, Office and Institutional uses are now permitted with defined road width requirements, minimum plot sizes and corresponding conversion charges. Conversion charges range from 10% to 50% of the industrial reserve price, depending on the land use type, said the Cabinet Minister, adding that for instance, commercial conversions require a 100-feet-wide road and a minimum plot size of 4000 sq. yds, attracting a 50% charge. The building controls including Ground Coverage, FAR, Height and Parking will continue to be governed by the Punjab Urban Planning and Development Building Rules, 2021 or as amended from time to time.