18 hours ago
Hefty fees by PSIEC have halted pre-1992 plot deals, rues industry
Ludhiana: Transfers of industrial land under Punjab Small Industries & Export Corporation (PSIEC) policy impose a hefty "unearned profit" charge on plots allotted before 1992.
The policy mandates a payment of Rs 7,500 per sq yard, up from the older and far lower rates, whenever these plots change hands. The revision, introduced under PSIEC's changed transfer framework, continues to stall transfer of plots. Industry stalwarts say it effectively blocks legitimate sales and transfers.
PSIEC had revised the fee schedule, which was ostensibly introduced to capture the "unearned increase" in land values over decades, aiming to curb speculative transfers.
However, local business associations argue that the blanket Rs 7,500/sq yard charge, roughly 16 times the older rate, has been burdensome deterring genuine transfers.
Industrial plot sales across Punjab have essentially screeched to a halt, with investors freezing activity amid uncertainty. Stakeholders demand a return to a sustainable, graduated fee structure consistent with past norms and economic realities.
by Taboola
by Taboola
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Industrialists say the policy threatens MSMEs of the city's core industries, many of whom require smooth transfers for growth, exit planning, or family succession.
As most of the focal points, except those under Phase VIII, are of the pre-1992 era, it is affecting most of them.
Rahul Ahuja, former CII Punjab chairman and convener of the Apex Chamber of Commerce & Industry, Punjab, said, "This move has virtually stalled all transactions.
It must be rolled back to the previous structure, if not something better."
Ashpreet Sahni, former chairman of CII Ludhiana, called for a complete withdrawal. "The unearned profit policy must be withdrawn and replaced with a transparent, rational, industry-friendly approach. It was being said that the matter would be looked into and resolved after elections. Hopefully, it will be done now," he said.
They said the transfer fees in the 1990s were as low as Rs 450 per sq yard compared to the current demands highlighting the sharp increase.
The industry is optimistic that an urgent policy correction would be brought in, now that Sanjeev Arora is Punjab's new industries minister.
