Punjab Initiates One-Time Settlement for Long-Standing Industrial Disputes
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Synopsis
The Punjab Cabinet's approval of a one-time settlement scheme offers a solution for over 40 years of unresolved industrial disputes, enabling industrialists to settle dues and reinvest in their businesses, which is expected to bolster economic growth and job creation.
Key Takeaways
- OTS Scheme for industrialists approved.
- 1,145 industrialists to benefit.
- 8% simple interest on dues.
- 100% waiver on penal interest.
- Deadline for scheme: December 31, 2025.
Chandigarh, March 3 (NationPress) In a significant move for industrialists, the Punjab Cabinet approved a one-time settlement (OTS) scheme aimed at resolving cases that have remained unresolved for over four decades, thus providing much-needed relief to the industrial sector.
This decision was made during a meeting of the Council of Ministers chaired by Chief Minister Bhagwant Mann.
A representative from the Chief Minister’s Office stated that the OTS scheme will enable industrialists to address disputes that pertain to increased land costs and overdue principal payments, ensuring that their long-standing issues are handled in a just and transparent manner.
Approximately 1,145 industrialists throughout Punjab are expected to benefit from this initiative, allowing them to settle their financial obligations and reinvest in their operations, which will contribute to economic enhancement and job creation. These businesses collectively provide employment to thousands, and the financial relief from the OTS scheme will help stabilize existing operations, avert closures, and create new jobs.
The scheme will be applicable to defaulter plot holders whose original allotment was granted on or before January 1, 2020, ensuring that long-standing cases are effectively resolved.
Industrial plots, sheds, and residential plots within industrial focal points developed by Punjab State Industries Export Corporation (PSIEC) will be included in this initiative, promoting a comprehensive approach to industrial revitalization.
According to the scheme, the government will introduce a significant financial relief measure by permitting defaulters to clear their dues at a minimal simple interest rate of 8%, along with a 100% waiver of penal interest.
Additionally, even those plot holders whose allotments were revoked will now have the opportunity to reclaim them by settling their dues, granting businesses a second opportunity for growth and rejuvenation. This initiative will enable industries to relieve themselves of substantial financial burdens and legal issues, thereby unlocking their potential for expansion and modernization.
The revenue generated from this scheme will be reinvested into industrial infrastructure, enhancing focal points and developing new industrial parks, further boosting the state’s industrial landscape, as noted by the spokesperson.
A dedicated virtual help desk will be established by the PSIEC to assist industry promoters in accessing the scheme, ensuring a streamlined and efficient application process. This initiative will improve Punjab's status as an industry-friendly region, attracting new investments and fostering a conducive atmosphere for business development.
The deadline to take advantage of this scheme is December 31, 2025, offering ample opportunity for defaulters to settle their outstanding dues. This decision is anticipated to stimulate industrial advancement, bolster the state’s economy, and reaffirm the government's dedication to supporting businesses and job creation within the state.
The Cabinet also approved a policy allowing the surrender of layout plans for industrial park projects, provided that the promoter pays any outstanding statutory charges as mandated by the competent authority during the approval process. This decision was made due to the absence of a policy regarding the surrender of layouts for projects developed under the Industrial Park Policy dated June 19, 2019.
