Policy allows use of industrial plots for hospitals, hotels, industrial parks, and more — streamlines operations and boosts investor confidence.
Chandigarh – In a significant move aimed at revamping the industrial landscape of the state, the Punjab Cabinet led by Chief Minister Bhagwant Singh Mann has approved key amendments to the Industrial Plot Transfer Policy, offering much-needed flexibility and relief to industries.
Under the revised policy, industrial plots can now be used for hospitals, hotels, industrial parks, and other approved purposes, breaking previous limitations and opening doors for multi-sector development.
The decision was taken during a cabinet meeting held at the Chief Minister’s official residence. According to a spokesperson from the CM’s Office, earlier versions of the policy were introduced in 2008, 2016, and 2021. However, the 2021 policy faced objections from industrial associations due to restrictive clauses. Responding to industry concerns, a committee was formed which recommended 12.5% transfer fees of the reserve price for freehold plots under the revised framework.

Approval to Convert Leasehold Industrial Plots to Freehold
A significant approval was also granted to convert leasehold industrial plots and sheds managed by PSIEC into freehold properties. These leasehold plots had complex transaction clauses, causing operational challenges. The new policy aims to simplify property management, boost ease of doing business, reduce litigation, and generate extra revenue for the state.
Changes in MSE Facilitation Council Rules 2021
The cabinet approved amendments to the MSE Facilitation Council Rules 2021, under the MSME Development Act, 2006. Previously, district-level MSE Facilitation Councils functioned under Deputy Commissioners, but delays were frequent in award payments.
As per new guidelines from the Central Government, a new recovery mechanism will be established to collect such dues as arrears of land revenue under the Punjab Land Revenue Act, 1887, ensuring timely payments to MSMEs.
Promotion Rule Amendments for Junior Engineers in Water Resources Dept.
In another major reform, the Cabinet approved amendments to service rules for Junior Engineers (Group-B) in the Water Resources Department. Of the 15% promotion quota, 10% will now be available to Junior Draftsmen, Surveyors, Work Mistris, Earth Work Mistris, and now, also Canal Patwaris and Maliya Clerks — provided they hold a diploma or degree in civil, mechanical, or electrical engineering and meet experience requirements. This will motivate staff to upskill and strengthen the department with experienced personnel.
Merger of Directorates under the Finance Department
In an administrative overhaul to improve efficiency and cut costs, the cabinet approved the merger of multiple directorates under the Finance Department:
- Small Savings, Banking, and Lotteries will now function as the Directorate of Small Savings, Banking, and Lottery.
- DPEAD and DFREI will merge into the Directorate of Public Enterprises and Financial Resources.
- Treasury-related directorates covering Accounts, Pension, and NPS will combine into the Directorate of Treasury and Accounts, Pension, and NPS.
This restructuring is projected to result in annual savings of approximately ₹2.64 crore.
Creation of New Vacancies for State SNA Treasury
To streamline the fund flow under centrally-sponsored schemes through the SNA SPARSH system, the cabinet approved the creation of nine new posts for the State SNA Treasury based in Chandigarh. These include:
- 1 District Treasury Officer
- 1 Treasury Officer
- 2 Senior Assistants
- 4 Clerks
- 1 Class IV Employee (Sevadar)