Resolution of Four-Decade-Old Industrial Disputes: Mann Government Gives Industrialists a ‘Second Chance’

PSIEC's OTS Scheme until December 31, 2025, to provide Rs 410 crore relief to 1145 industrialists*

Chandigarh, December 14, 2025: Under the leadership of Punjab Chief Minister Bhagwant Mann, the state government has launched a historic One-Time Settlement (OTS) scheme, providing unprecedented relief to industrialists. This scheme is proving to be a boon for 1,145 industrial plot holders who have been facing legal and financial difficulties for over forty years due to increased land costs and defaults in payment of the principal amount. This scheme, launched by the Punjab Small Industries and Export Corporation (PSIEC), is open until December 31, 2025, and is expected to provide a total relief of Rs 410 crore to the industrialists. This initiative will not only help resolve long-standing disputes but will also accelerate industrial development in Punjab and create thousands of job opportunities.

Industry and Commerce Minister Tarunpreet Singh Sond expressed his gratitude to Chief Minister Bhagwant Mann, stating that the notification for the scheme was issued within just 10 days of its approval in the cabinet meeting on March 3, 2025, demonstrating the government's swift action. He said, “This scheme is a new lease of life for industrial units that have been burdened by financial liabilities for decades. The Mann government has proven that it is a pro-industry government.” Under the scheme, defaulting plot holders will have to pay their outstanding dues at a simple interest rate of only 8 percent, and 100 percent of the penal interest will be waived. This waiver is also applicable to industrialists whose plots have already been cancelled.

The most significant feature of this scheme is that even those industrialists whose allocations have been cancelled can get their plots back by paying their outstanding dues. This ‘Second Chance’ scheme is proving to be a lifeline for hundreds of small and medium-sized entrepreneurs who had lost their industrial units due to financial difficulties. The scheme will apply to all industrial plots, sheds, and residential plots allotted before January 1, 2020. A spokesperson from the Chief Minister's office stated that the scheme will facilitate the resolution of industrial disputes related to increased land costs and delayed principal payments. All properties located in industrial focal points developed by PSIEC will come under the purview of this scheme.

Sanjeev Arora, Rajya Sabha MP from Ludhiana and MLA from Ludhiana West, termed the scheme a “game-changer,” saying he had been raising this issue with the government for a long time. He met Chief Minister Bhagwant Mann before the cabinet meeting and apprised him of the problems faced by industrialists. Arora said, “This scheme is not just financial relief, but a means to restore the confidence of industrialists. Those who were living in uncertainty for decades can now confidently revive their businesses.” He added that hundreds of industrial units in Ludhiana were affected by this problem, and they have now received renewed hope.

The response from various industrial sectors in Punjab has been overwhelmingly positive. Ravinder Singh, a small industrialist from Jalandhar, said, “I was allotted a plot in 2018, but due to business difficulties, I couldn't pay the increased costs. My plot was cancelled, and I thought everything was over. Now this scheme has given me a chance to stand on my feet again.” Similarly, Hardeep Kaur from the Mohali industrial area said, “We were fighting a legal battle for the last five years and paying hefty lawyer fees. This scheme is a sigh of relief for us. Now we can focus entirely on business expansion.” Industry associations have also lauded this initiative and are encouraging more and more members to avail of the scheme.

The economic impact of this scheme will be far-reaching. Experts believe that the relief provided to 1,145 industrialists will not only stabilize their businesses but also create new employment opportunities. These industrialists collectively employ thousands of people. Representatives of the PHD Chamber of Commerce stated that this scheme will establish Punjab as an industry-friendly state and attract new investments. According to economic analysts, the scheme will also boost the state's GDP as dormant industrial units will resume operations. PSIEC will also benefit from receiving long-pending dues, strengthening its financial position and enabling it to invest in new industrial projects.

The Punjab government has made special arrangements for the smooth implementation of the scheme. A dedicated virtual help desk has been set up by PSIEC where industry promoters can seek assistance to avail the benefits of the scheme. This help desk will ensure a smooth and hassle-free process for applicants. PSIEC officials have clarified that the OTS (One-Time Settlement) will only apply to the original plot cost and the enhanced land cost. The principal amount will not be waived in any way, but the 100 percent waiver of penal interest and the provision of only 8 percent simple interest is a significant relief for the industrialists. Officials have warned that if defaulters fail to make payments under this scheme, the outstanding amount will be recovered according to the terms and conditions of their respective allotments.

This decision was taken at a cabinet meeting chaired by Chief Minister Bhagwant Mann, a testament to the government's industry-focused policies. The Mann government has undertaken several pro-industry initiatives during its tenure, including promoting ease of doing business, a single-window clearance system, and investor-friendly policies. This OTS scheme is also seen as a crucial link in that chain. Industry Minister Tarunpreet Singh Sond said, “This initiative will accelerate industrial development in Punjab, strengthen the state's economy, and reaffirm the government's commitment to supporting businesses and job creation.” This scheme is a significant step towards establishing Punjab as a leading industrial hub in North India.

With the deadline set for December 31, 2025, industrialists are urged to avail themselves of this scheme as soon as possible. Experts believe that this scheme is not only a solution to existing problems but also lays the foundation for a better industrial environment in the future. Industrialists and traders have also widely praised the scheme on social media, with many calling it "Mann government's Diwali gift to industries." Industry associations across the state are organizing special camps to create awareness among their members. PSIEC offices have witnessed a significant increase in inquiries, reflecting the scheme's popularity.

This initiative by the Punjab government sends a clear message that when the government is industry-friendly, it benefits not only businesses but all sections of society. The revival of industrial units will lead to increased employment, boost the local economy, and improve Punjab's overall growth rate. This scheme is a ray of hope for thousands of families who depend on these industrial units. Now, the responsibility lies with the industrialists to take advantage of this golden opportunity in a timely manner and contribute to Punjab's industrial development by resolving their pending issues. Experts believe that the success of this scheme could serve as a model for other states.