Under the leadership of Punjab Chief Minister Bhagwant Singh Mann, the state government has rolled out a landmark One-Time Settlement (OTS) scheme, bringing major relief to industrialists across Punjab.
The scheme has emerged as a major support system for 1,145 industrial plot holders who have been grappling with legal and financial hurdles for more than four decades due to escalated land costs and defaults in principal payments. Introduced by the Punjab Small Industries and Export Corporation (PSIEC), the scheme will remain open till December 31, 2025, and is projected to offer total relief of Rs 410 crore.
This initiative is expected to resolve long-pending disputes, speed up industrial growth in Punjab, and generate thousands of employment opportunities.
Industry and Commerce Minister Tarunpreet Singh Sond expressed gratitude to Chief Minister Bhagwant Singh Mann, noting that the scheme’s notification was issued within just 10 days of its approval in the cabinet meeting held on March 3, 2025, highlighting the government’s swift decision-making.
He said, “This scheme breathes new life into industrial units burdened with financial liabilities for decades. The Mann government has clearly established itself as an industry-friendly government.”
Under the scheme, defaulting plot holders are required to clear outstanding dues at a simple interest rate of 8 percent, while 100 percent penal interest has been waived. This benefit also applies to industrialists whose plots had earlier been cancelled.
A key highlight of the scheme is that even those industrialists whose plot allotments were cancelled can reclaim their plots by paying pending dues. This ‘Second Chance’ scheme has become a lifeline for hundreds of small and medium entrepreneurs who had lost their industrial assets due to financial distress. The scheme covers all industrial plots, sheds, and residential plots allotted before January 1, 2020.
According to a spokesperson from the Chief Minister’s Office, the scheme will help settle disputes arising from increased land costs and delayed principal payments. All properties situated in industrial focal points developed by PSIEC fall under the scheme’s scope.
Sanjeev Arora, Rajya Sabha MP from Ludhiana and MLA from Ludhiana West, described the initiative as a “game-changer”, stating that he had consistently raised this issue with the government. He said he met Chief Minister Bhagwant Singh Mann ahead of the cabinet meeting and informed him about the challenges faced by industrialists.
“This scheme is not merely financial relief; it restores the confidence of industrialists. Those living under uncertainty for decades can now revive their businesses with assurance,” Arora said, adding that hundreds of industrial units in Ludhiana alone had been affected and have now received fresh hope.
The response from Punjab’s industrial community has been overwhelmingly positive. Ravinder Singh, a small industrialist from Jalandhar, said, “I was allotted a plot in 2018, but business losses prevented me from paying the enhanced cost. My plot was cancelled, and I felt everything was lost. This scheme has given me a fresh start.” Similarly, Hardeep Kaur from the Mohali industrial area said, “We were stuck in legal battles for five years and spending heavily on lawyers. This scheme has brought great relief and allows us to focus on business expansion.” Industry associations have also welcomed the move and are motivating members to benefit from the scheme.
Experts believe the economic impact of this initiative will be significant. Relief to 1,145 industrialists will not only stabilize their businesses but also lead to increased employment generation, as these units collectively employ thousands of workers.
Representatives from the PHD Chamber of Commerce stated that the scheme will position Punjab as an industry-friendly state and attract fresh investments. Economic analysts also expect the revival of dormant units to boost the state’s GDP. At the same time, PSIEC will benefit from the recovery of long-pending dues, strengthening its financial base and enabling further industrial development.
To ensure smooth implementation, the Punjab government has put special arrangements in place. PSIEC has set up a dedicated virtual help desk to assist industrialists in availing the scheme’s benefits, ensuring a hassle-free process. PSIEC officials clarified that the OTS (One-Time Settlement) applies only to the original plot cost and enhanced land cost.
While the principal amount will not be waived, the 100 percent waiver of penal interest and the provision of 8 percent simple interest offer substantial relief. Officials also cautioned that failure to make payments under the scheme will result in recovery as per the original allotment terms.
The decision was taken in a cabinet meeting chaired by Chief Minister Bhagwant Singh Mann, underlining the government’s pro-industry approach. During its tenure, the Mann government has introduced several industry-friendly reforms, including ease of doing business measures, a single-window clearance system, and investor-friendly policies.
The OTS scheme is seen as a vital part of these efforts. Industry Minister Tarunpreet Singh Sond said the initiative would accelerate industrial growth, strengthen Punjab’s economy, and reaffirm the government’s commitment to supporting businesses and job creation, helping establish Punjab as a major industrial hub in North India.
With the deadline set for December 31, 2025, industrialists have been urged to avail the scheme at the earliest. Experts believe the initiative not only resolves existing challenges but also lays the groundwork for a healthier industrial ecosystem. Industrialists and traders have widely praised the move on social media, with many calling it the “Mann government’s Diwali gift to industries.” Industry bodies are organizing awareness camps, while PSIEC offices have reported a surge in inquiries, reflecting the scheme’s popularity.
This initiative sends a strong message that an industry-friendly government benefits not just businesses but society as a whole. Revival of industrial units will enhance employment, strengthen local economies, and boost Punjab’s overall growth. The scheme has emerged as a ray of hope for thousands of families dependent on these industries.
Now, it is up to industrialists to seize this opportunity in time and contribute to Punjab’s industrial resurgence. Experts believe the success of this scheme could serve as a model for other states as well.