In a major relief to industrialists, the Punjab government has accepted a long-standing demand to ease the process of changing industries. From now on, business owners will not be required to undergo the Change of Land Use (CLU) process repeatedly when switching the type of industry or business on a plot.
Under the revised policy, once a CLU is granted and land is purchased for industrial purposes, businesspersons will have the freedom to change the nature of their industry after five years without needing fresh CLU approval. It is said that this reform will benefit MSMEs and startups seeking flexibility in business operations.
The Bhagwant Mann government aims to enhance the ease of doing business by allowing industry changes within the same premises. Industrialists will be able to submit a simple application online, and after basic verification, will be granted permission to switch their business type.
The new rules will apply to ten specific types of industries that commonly require flexibility in business models. These include:
- Hotels
- Malls
- Hospitals
- Educational Institutions
- Multiplexes
- Warehouses
- IT and ITeS
- Auto Showrooms
- Banquet Halls
- Marriage Palaces
Before the latest amendment, switching between these categories would require reapplying for CLU, however, that will no longer be necessary after five years of initial setup.
Ease in Plot Subdivision as Well
After CLU, another major announcement is the relaxation in plot subdivision norms. Industrialists with larger plots (exceeding 8,000 square yards) will now be allowed to divide their land into smaller units of at least 400 square yards. This move aims to help those who wish to lease or sell portions of their plots for setting up new units or business ventures.
To initiate subdivision, the industrialist needs to submit a simple application, post which the government will allow the division and grant permissions accordingly. This will help promote micro-level industrial expansion across focal points and industrial zones.