Resolution of four decades old industrial disputes: Mann government gave ‘second chance’ to industrialists

Punjab : Under the leadership of Punjab Chief Minister Bhagwant Mann, the state government has implemented a historic One Time Settlement (OTS) scheme, giving huge relief to the industrialists who have been facing the crisis for a long time. The scheme has brought a sigh of relief to 1,145 industrial plot holders who were under legal and financial pressure due to increased land cost and outstanding principal amount for the last four decades. This scheme, run by Punjab Small Industries and Export Corporation, will be effective till December 31, 2025 and is likely to provide relief of about Rs 410 crore to the industry sector.

Government’s fast working style and pro-industry thinking
Expressing gratitude to Chief Minister Bhagwant Mann, Industries and Commerce Minister Tarunpreet Singh Sond said that the notification of the scheme was issued within just ten days of the Cabinet approval, which shows the quick decision-making ability of the government. He said that this scheme has brought a new opportunity for those industrial units which were stalled for years due to financial burden. The government has made it clear that it stands with the industries and is taking concrete steps for their revival.

‘Second chance’ to defaulting industrialists
The most important feature of this OTS scheme is that the industrialists whose plots have already been canceled have also been given the opportunity to get the plot again by paying their dues. Under the scheme, only 8 percent simple interest will be charged, while 100 percent penal interest has been completely waived. This facility will be applicable to all industrial, shed and residential plots allotted before January 1, 2020, which will provide an opportunity to hundreds of small and medium entrepreneurs to stand up again.

Increased confidence in industry, reaction of leaders
Rajya Sabha MP from Ludhiana, Sanjeev Arora described this scheme as a “game changer” for the industry sector. He said that he had been raising this issue with the government for a long time and now its solution is a victory for the confidence of the industrialists. According to him, entrepreneurs who have been living in uncertainty for years will now be able to restart their businesses with confidence, especially in industrial cities like Ludhiana, its widespread impact will be seen.

positive impact at grassroots level
Positive reactions regarding this scheme are coming from various industrial areas of the state. Many industrialists said that long-running legal disputes, economic pressure and uncertain future had weakened their businesses. Now the OTS scheme has not only given them financial relief but has also opened up new possibilities for the future. Industry associations believe that this will restart the closed units and increase employment opportunities.

Punjab’s economy will get new momentum
According to economic experts, this scheme will accelerate the industrial activities of the state and thousands of people will get direct and indirect employment. Re-operation of long stalled industrial units will also contribute positively to the GDP of the state. At the same time, PSIEC getting the outstanding amount will strengthen its financial position, which will open the way for new industrial projects in future.

Easy process and clear terms
For effective implementation of the scheme, PSIEC has also started a special virtual help desk, so that industrialists do not face any problem in the application and payment process. Officials have clarified that no rebate will be given in the principal amount, but complete waiver of penal interest and lower interest rates are a big relief for industrialists. In case of non-payment within the stipulated time, action will be taken as per the old conditions.

Strong steps towards industry-friendly Punjab
Chief Minister Bhagwant Mann’s government is already working on ease of doing business, single window clearance and investor-friendly policies. This OTS scheme is being considered an important part of that series. According to the Industries Minister, this initiative will prove to be decisive in establishing Punjab as a major industrial center of North India.

Appeal to avail benefits before the last date
Keeping in view the deadline of 31 December 2025, the government and industry organizations have appealed to all eligible industrialists to avail the benefits of this scheme in time. This scheme is not only a solution to old disputes, but also lays the foundation for a strong industrial environment in the future. Experts believe that if this scheme is successful, other states may also consider adopting it as a model.