The revival of industrial operations is also expected to contribute positively to the state's GDP.
Mann Govt Offers INR 410 Crore OTS Relief, Aims to Resolve 40-Year Industrial Disputes for 1,145 Industrialists
The Punjab government, under Chief Minister Bhagwant Mann, has introduced a remarkable One-Time Settlement (OTS) scheme focused on resolving industrial disputes that have remained unresolved for decades. The Punjab Small Industries and Export Corporation (PSIEC) has rolled out this initiative, under which it is providing long-awaited relief to 1,145 industrial plot holders who have faced legal and financial hardships for nearly forty years due to increased land costs and delayed payment of principal amounts.
The scheme will remain in force until December 31, 2025, and it is expected to offer cumulative relief of INR 410 crore. Apart from settling prolonged disputes, the initiative is expected to accelerate industrial growth in Punjab and generate significant employment opportunities by reviving stalled industrial units.
Industry and Commerce Minister Tarunpreet Singh Sond expressed gratitude to Chief Minister Bhagwant Mann, noting that the notification for the scheme was issued within ten days of cabinet approval on March 3, 2025. He said that the swift rollout reflects the government’s commitment to support industrial growth. According to him, the scheme provides a fresh lease of life to industrial units burdened by long-standing financial liabilities and demonstrates the pro-industry stance of the Mann government.
Under the OTS framework, defaulting plot holders are required to pay their outstanding dues with a simple interest rate of 8 per cent, while the entire penal interest has been waived off. This concession also applies to industrialists whose plots had earlier been cancelled.
A key feature of the scheme is that even cancelled allottees are eligible to reclaim their plots by clearing their pending dues. The initiative has become a lifeline for numerous small and medium entrepreneurs who had lost their industrial units due to financial distress. The scheme covers all industrial plots, sheds, and residential plots allotted before January 1, 2020, within PSIEC-developed industrial focal points.
A spokesperson from the Chief Minister’s Office said that the initiative will help resolve disputes linked to enhanced land costs and delayed principal payments, thereby restoring confidence among industrial stakeholders.
Sanjeev Arora, Rajya Sabha MP from Ludhiana and MLA from Ludhiana West, described the scheme as a game-changer. He said he had been consistently raising the issue of industrial disputes and had discussed the matter with Chief Minister Bhagwant Mann ahead of the cabinet meeting. According to him, the scheme offers financial relief and restores certainty and confidence to industrialists who had remained in limbo for years. He added that hundreds of industrial units in Ludhiana alone were affected by these issues.
The scheme has received an overwhelmingly positive response from industrialists across Punjab. According to several entrepreneurs, the initiative has provided them an opportunity to restart their businesses after years of uncertainty and legal issues. Industry associations have praised the move and are encouraging members to benefit from the scheme.
According to economic experts, the initiative will have a wide-ranging impact by stabilising businesses, reviving dormant industrial units, and creating new employment opportunities. Representatives of the PHD Chamber of Commerce have said the scheme will strengthen Punjab’s image as an industry-friendly state and help attract fresh investment. The revival of industrial operations is also expected to contribute positively to the state’s GDP. PSIEC will benefit from the recovery of long-pending dues and improve its financial health and capacity to invest in future projects.
PSIEC has established a dedicated virtual help desk to ensure smooth implementation for applicants throughout the process. Officials clarified that the OTS applies strictly to the original plot cost and enhanced land cost. While the principal amount remains payable in full, the waiver of penal interest and reduced interest rate offer substantial relief. Authorities have cautioned that failure to comply with payment terms under the scheme will result in recovery as per original allotment conditions.
The decision was taken during a cabinet meeting chaired by Chief Minister Bhagwant Mann and reflects the government’s broader focus on industrial development. The Mann government has undertaken several pro-industry measures, including ease-of-doing-business reforms, single-window clearances, and investor-friendly policies. The OTS scheme is being viewed as an important extension of these efforts.
As the deadline is set as December 31, 2025, industrialists are being encouraged to avail themselves of the scheme promptly. Industry bodies are organising awareness camps, and PSIEC offices have reported a surge in enquiries. The initiative has also drawn widespread appreciation on social media, with many describing it as a major boost for Punjab’s industrial sector. Experts believe its success could inspire similar measures in other states.
