PSIEC announces policy for clubbing and de-clubbing of plots
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Chandigarh: The Punjab govt has unveiled a comprehensive policy for the clubbing and de-clubbing of industrial plots, while also establishing a long-awaited appellate authority to handle appeals over cancelled allotments, industries minister Tarunpreet Singh Sond announced on Saturday here.
The new policy, notified on May 19 and which the cabinet approved on April 24, aims to bring procedural clarity and land-use efficiency across the state's industrial estates and focal points under the Punjab Small Industries and Export Corporation (PSIEC). Sond said the policy responds to years of demands from industrialists seeking a streamlined mechanism to merge or divide adjoining plots to support business expansion, improve operational efficiency and optimise land utilisation.
The rules apply to all PSIEC-controlled plots, excluding booths and sheds.
To be eligible for clubbing or de-clubbing, plots must be owned by the same entity and be of the same type — either leasehold or freehold — with all dues cleared. Applications must be supported by valid lease or conveyance deeds. A fee of 1% of the current reserve price of the total plot area — capped at ₹50 lakh — will apply. De-clubbing will only be allowed in line with the original layout plan and subject to zoning laws, building codes and environmental regulations, the minister said.
"This step will not only streamline industrial development but also create opportunities for project growth in a regulated and transparent manner," Sond said.
Separately, the PSIEC has also operationalised an Appellate Authority — notified on May 7 — to address grievances related to cancelled plots. The authority will offer relief to affected allottees whose plots were cancelled for reasons such as failing to begin production, violating zoning rules, or defaulting on instalments.
The govt had cancelled 700-odd plots in recent years, and efforts to restore those stalled after a previous restoration scheme lapsed in March 2022.
Affected allottees now have until Sept 30 to appeal for reinstatement. In future cases, appeals must be filed within six months of the cancellation date. "This authority will reduce unnecessary litigation, provide applicants with fair hearing opportunities, and bring transparency to the reinstatement process," Sond said.
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