Punjab Government Announces One-Time Settlement (OTS) Scheme for Industrialists: Tarunpreet Sond

• Expresses Gratitude to CM Bhagwant Singh Mann for Introducing OTS Scheme to Resolve Over Four Decades of Pending Cases

Chandigarh, March 14
In a major relief to industrialists in Punjab, the state government, under the leadership of Chief Minister Bhagwant Singh Mann , has issued a notification for the implementation of the One-Time Settlement (OTS) Scheme . This scheme aims to recover pending dues related to enhanced land cost and principal plot costs from defaulting plot holders of the Punjab Small Industries & Export Corporation (PSIEC) .

Industry and Commerce Minister, Tarunpreet Singh Sond , expressed heartfelt gratitude to Chief Minister Bhagwant Singh Mann for introducing this landmark initiative. He highlighted that the scheme is designed to resolve cases pending for over four decades, providing much-needed relief to industrialists. “The Council of Ministers, in its meeting held on March 3, 2025 , approved the implementation of the OTS scheme, and within just 10 days, the notification has been issued,” he said.

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Minister Sond emphasized that this move will not only spur industrial growth but also strengthen Punjab’s economy while reaffirming the government’s commitment to supporting businesses.

Key Details of the OTS Scheme

A spokesperson for the department outlined the provisions of the scheme as follows:

1. Applicability :
   • The OTS scheme applies only to the Principal Cost of the Plot and the Enhanced Land Cost .
   • The Original Enhanced Land Cost (including amounts paid by PSIEC to landowners and interest imposed by the Hon’ble Court) will not be waived under any circumstances.
2. Waiver of Penal Interest :
   • A 100% waiver on penal interest components will be provided.
   • Only 8% per annum simple interest will be charged on the defaulted amount.
3. Payment Deadline :
   • All defaulter plot holders/allottees must clear their dues by December 31, 2025 .
4. Restoration of Cancelled Allotments :
   • Plot holders whose allotments have already been canceled can also avail this scheme to pay their dues and seek restoration of their plots (except for vacant or re-allotted plots).
   • Restoration will be subject to approval by the Scrutiny Committee and payment of all outstanding dues, including enhanced land cost, extension fees, damages (if awarded by the Court), etc., within the prescribed timeline.
5. Exclusions :
   • Plots lying vacant or those already re-allotted will not be eligible for restoration under this scheme.
6. Defaulters Who Fail to Pay :
   • If defaulters fail to clear their dues under the OTS scheme, recovery will proceed as per the terms and conditions of their original allotment agreements.
7. Eligibility :
   • The OTS scheme will apply to plot holders whose original allotment was issued on or before January 1, 2020 .
8. Coverage :
   • The scheme will be applicable to all industrial plots/sheds and residential plots in Industrial Focal Points developed by PSIEC across Punjab.

Expected Impact

The OTS scheme is expected to provide significant relief to industrialists burdened by long-pending dues. By waiving penal interest and offering a simplified payment structure, the government aims to encourage defaulters to settle their accounts, thereby promoting industrial activity and economic growth in the state.

Minister Tarunpreet Singh Sond reiterated that this initiative reflects the government’s dedication to resolving long-standing issues faced by the industrial sector and fostering a business-friendly environment in Punjab.

This bold step underscores the AAP government’s commitment to resolving decades-old challenges and ensuring a brighter future for Punjab’s industrial landscape.

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