Punjab Cabinet approves two OTS schemes for industrialists

    Chandigarh, Mar 3 (PTI) The Punjab Cabinet on Monday approved two one-time settlement schemes for industrialists to waive compounding and penal interests so that they could clear their long-pending dues for industrial plots in focal points.
    The decision in this regard was taken in the cabinet meeting chaired by Chief Minister Bhagwant Mann.
    A spokesperson of the Chief Minister's Office said the OTS schemes will facilitate industrialists to settle industrial disputes related to enhanced land costs and delayed principal payments thereby ensuring that long-standing grievances of industrialists are resolved in a fair and transparent manner.
    A total of 1,145 industrialists across Punjab will benefit from this scheme, allowing them to clear their dues and reinvest in their businesses, leading to economic growth and job creation, said the spokesperson.
    These industrialists collectively employ thousands of people, and the financial relief provided by the OTS scheme will further stabilise businesses, prevent closures and lead to new employment opportunities.
    Earlier, addressing the media after the cabinet meeting here, Industries Minister Tarunpreet Singh Sond said the AAP government was committed towards the promotion of the industry.
    He said that the cabinet approved the proposal to bring two OTS schemes for industrialists.
    There are 52 focal points, spread over 8,000 acres of land and 14,000 industrial plots in the state, he added.
    Giving details about the first OTS scheme, the minister said the plot holders, who did not pay their land enhancement charges, would not need to pay penal and compounding interests on their dues.
    They can now pay simple interest at the rate of 8 per cent to clear their dues under the OTS, said the minister, adding that the compounding and penal interests would be waived.
    About the second OTS scheme, he said those industrialists, who were allotted industrial plots but could not pay their principal amount because of any reason, can now pay their charges with 8 per cent simple interest.
    They don't need to pay compounding and penal interests, he added.
    The minister said these two one-time settlement schemes will continue till December 31, 2025, urging industrialists to avail the benefits of this scheme.
    The scheme will apply to defaulter plot holders whose original allotment was issued on or before January 1, 2020, ensuring that long-pending cases are addressed effectively.
    Industrial plots, sheds and residential plots in Industrial Focal Points developed by Punjab State Industries Export Corporation (PSIEC) across Punjab will be covered under this scheme, making it a broad-based initiative for industrial revival, said the spokesperson.
    As per the scheme, the government will provide a significant financial relief measure by allowing defaulters to clear dues with a nominal simple interest rate of 8 per cent along with a 100 per cent waiver of penal interest.
    Even plot holders whose allotments were cancelled will now have a chance to get them back by paying their dues, giving businesses a second chance to restart and grow.
    The revenue collected through this scheme will be reinvested into industrial infrastructure, including improving focal points and developing new industrial parks, boosting Punjab's industrial landscape, said the spokesperson.
    A special virtual help desk will be set up by PSIEC to assist industry promoters in availing of the scheme, ensuring a smooth and hassle-free process for applicants.
    Rajya Sabha MP Sanjeev Arora, who was also present, thanked AAP national convener Arvind Kejriwal and Punjab Chief Minister Bhagwant Mann for bringing two OTS schemes for industrialists.
    He said that it was the major demand of industrialists and said it would benefit small and medium enterprises the most.
    Arora said, "Industry representatives have calculated that they will save Rs 2,160 per square yard due to this initiative. This benefit will directly strengthen their financial position and improve their balance sheets".
    Industry bodies CII Punjab and PHD Chamber of Commerce and Industry welcomed the Punjab government's move to announce the OTS scheme.
    CII Punjab chairman Amit Jain said the Punjab government's initiative will undoubtedly help industries continue their operations uninterrupted, and by clearing past dues, it will allow businesses to focus on expansion and innovation.
    Meanwhile, the cabinet also gave a nod to the policy to allow the surrender of the layout plan of an industrial park project, provided that the promoter deposits the outstanding dues of statutory charges as levied by the competent authority at the time of approval.
    The decision has been taken due to the non-availability of a policy regarding the surrender of the layout of projects developed under the Industrial Park Policy.
    The cabinet also gave its consent to amend Clause 5(1) of the Punjab State Public Service Commission (Condition of Service) Regulation Act for the appointment of the chairman and members of the commission.

(This story has not been edited by THE WEEK and is auto-generated from PTI)