Growth on mind, Punjab Govt to clear new industrial units in 5 days

In order to push economic growth and attract investment, the government will now grant all necessary approvals to set up an industrial unit (green category) at focal point or industrial park within just five days.

In case of a unit being set up outside the industrial zone/ park, the deemed approvals will be granted by Invest Punjab in 15 days. For any brownfield expansion of industrial unit, the entrepreneur will have to wait for 18 days to get the requisite clearances.

“This is a big push to seek industrial investment in Punjab. The Right to Business Act has been amended and rules have been framed to ensure that investors get the best experience in Punjab,” said Industries Minister Sanjeev Arora. This amended Act was unveiled before industrialists by CM Bhagwant Mann. “The Act, already passed by the Vidhan Sabha, comes into force with immediate effect,” he added.

Arora said if permission for starting construction/ operation gets delayed, disciplinary action would be taken against officials concerned and the project would be deemed as approved after the stipulated time period. “These investors, however, will be required to get all other approvals within three years of the start of their operations,” he added.

Other than amending the Right to Business Act, the government has brought a single entry-exit digital gateway for entrepreneurs. Further, the government is all set to offer fiscal and non-fiscal incentives, over and above the ones offered in the previous industrial policies and usher in labour reforms.

The AAP government would be announcing its umbrella industrial policy and at least 15 other sector-specific policies in January 2026. It would also offer special incentives for women entrepreneurs. The policy would ensure that all industrial sectors get some fiscal incentives directly linked to the Fixed Capital Incentive (FCI).

The Tribune has learnt that other than Invest Punjab and Industry Department, Punjab Development Commission as well as Ernst and Young have been involved to formulate policies. Earlier, the state government had notified 24 sector-specific committees to recommend what they wanted in the new policy. These committees had submitted their recommendations last month.

Umbrella industrial policy to be announced in Jan 2026

The AAP government will announce its umbrella industrial policy and at least 15 other sector-specific policies in Jan 2026

These policies will ensure that all industrial sectors get some fiscal incentives directly linked to the Fixed Capital Incentive

Other than Invest Punjab, Punjab Development Commission and Ernst & Young have been involved to formulate policies