Punjab has witnessed unprecedented industrial growth since 2017 post the launch of new Industrial and Business Development Policy, 2017. The various reforms undertaken by the State Govt. in the last 4.5 years have resulted in a whopping 1 lakh Cr+ investments in more than 3400 projects. In the recently concluded Investors’ Summit, 2021; S. Charanjit Singh Channi, Chief Minister Punjab, reaffirmed to the industry that his government will continue to do whatever needs to be done for facilitating trade and industry in future as well.
To assuage the pain of industry and to promote rapid industrial development in the State of Punjab, the Punjab Government has simplified the Change of Land Use process in the state.
During stakeholder consultation meetings held by Punjab Government with captains of the industry, it was observed that there was a long-felt need in the industry to simplify the Change of Land Use process. The minimum requirement of approach road width of 6 karam was restricting industrial growth, especially for small and medium size industry. Sensing the need of the industry, S. Charanjit Singh Channi led Punjab Government decided to usher in reforms in the Change of Land Use process.
During the 4th edition of the Progressive Punjab Investors’ Summit held on 26th and 27th October 2021, S. Charanjit Singh Channi, Chief Minister of Punjab, announced a relaxation in rules for width of approach road for industries from 6 karam to 4 karam to encourage industries to set up their units in a hassle-free manner. Subsequently, these reforms have been notified by the government to bolster the business-friendly climate in the state.
1) Simplification of CLU process:
There shall be no requirement for CLU for setting up of standalone industries in permissible zones. Before notifying this reform, the industries were required to obtain the CLU from the authority and then to get the building plans approved. The process was time-consuming. This process simplification would encourage setting up of industries and reduce compliance burden.
Notification issued on 12th November 2021, by Department of Housing and Urban Development.
2) Allowing Standalone industrial projects on 4 karam rastas:
The Standalone industries can be considered for approval on 4 karam rasta instead of 6 karam subjected to fulfilment of the guidelines as per notification dated 3rd November 2021 issued by Directorate of Town and Country Planning, Punjab (see Notification_2.pdf for more details). This will not only widen the options of feasible sites for the industries but will also help the investors in minimizing capex on land.
Note: Ongoing projects where the road width is 3 karam are also allowed subject to the condition that their Common Application Forms (CAF) have been filed on Invest Punjab – Business First Portal before 15.09.2021. Notification issued on 2nd November 2021 by Directorate of Town and Country Planning, Punjab (see Notification_3.pdf for more details).
All the above notifications are available on the Invest Punjab website at https://pbindustries.gov.in/static/about_punjab;Key=Notifications
These ground-breaking initiatives will go a long way in creating a conducive business climate in Punjab.