Punjab Government Introduces One-Time Settlement (OTS) Scheme to Resolve Industrial Disputes

By Manoj Dhiman 

In a historic move, the Punjab government has resolved a long-standing issue faced by industrialists for over 32 years by introducing the One-Time Settlement (OTS) scheme. The scheme aims to provide financial relief and legal resolution to industrialists, fostering economic growth and employment opportunities in the state.

The industry has grandly welcomed the decision of Punjab CM Bhagwant Singh Mann to introduce the OTS scheme. This much-needed initiative will provide financial relief to industrialists across Punjab, enabling them to clear their dues, reinvest in their businesses, and drive economic growth. By addressing long-pending cases with a fair and structured approach, this scheme will stabilize industries, prevent closures, and generate new employment opportunities. The Punjab government’s commitment to fostering an industry-friendly environment will not only strengthen the state's economy but also attract fresh investments. The industry say they appreciate this decisive step toward industrial revival and development.

Approximately 1145 industrialists across Punjab will benefit from this scheme, allowing them to clear their dues and reinvest in their businesses, leading to economic growth and job creation. These industrialists collectively employ thousands of people, and the financial relief provided by the OTS scheme will further stabilize businesses, prevent closures and lead to new employment opportunities.

The scheme will apply to defaulter plot holders whose original allotment was issued on or before January 1, 2020, ensuring that long-pending cases are addressed effectively. Industrial plots, sheds and residential plots in Industrial Focal Points developed by Punjab State Industries Export Corporation (PSIEC) across Punjab will be covered under this scheme, making it a broad-based initiative for industrial revival. As per the scheme, the government will provide a significant financial relief measure by allowing defaulters to clear dues with a nominal simple interest rate of 8%, along with a 100% waiver of penal interest.

This initiative will enhance Punjab's reputation as an industry-friendly state, attract new investments, and create an environment conducive to business growth. The last date to avail of this scheme is December 31, 2025, providing ample time for defaulters to come forward and clear their outstanding dues. This move is expected to spur industrial growth, strengthen Punjab's economy, and reaffirm the government's commitment under the leadership of Punjab CM Bhagwant Singh Mann to supporting businesses and job creation in the state.

OTS was one of the major issues of the industry, which has been finally resolved. Various industrial associations have been demanding OTS. 

Relief for Industrialists After Decades
The Punjab Cabinet, under the leadership of Chief Minister Bhagwant Singh Mann, has approved the OTS scheme to address industrial disputes that have been pending for more than four decades. This decision was taken in a recent Council of Ministers meeting at the Chief Minister’s official residence.

Key Features of the OTS Scheme
•    Resolution of Industrial Disputes: The scheme is designed to settle issues related to enhanced land costs and delayed principal payments, providing a fair and transparent solution to industrialists.
•    Beneficiaries: Approximately 1,145 industrialists across Punjab will benefit from this initiative, allowing them to clear their dues and reinvest in their businesses.
•    Eligibility Criteria: The scheme will apply to defaulter plot holders whose original allotment was issued on or before January 1, 2020.
•    Coverage: Industrial plots, sheds, and residential plots in Industrial Focal Points developed by Punjab State Industries Export Corporation (PSIEC) will be included.
•    Financial Relief: Defaulters will be allowed to clear their dues with a nominal simple interest rate of 8% and a 100% waiver of penal interest.
•    Reinstatement of Cancelled Plots: Even those whose allotments were previously cancelled will get a chance to reclaim their plots by settling their dues.

Economic Impact and Growth Prospects
•    Job Creation: The scheme will help stabilize businesses, prevent closures, and create new employment opportunities.
•    Industrial Expansion: By reducing financial burdens and legal complexities, industries can focus on expansion and modernization.
•    Reinvestment in Infrastructure: Revenue collected through the scheme will be used to enhance industrial infrastructure, improve focal points, and develop new industrial parks.
•    Investment Attraction: This initiative positions Punjab as an industry-friendly state, encouraging new investments and fostering a business-conducive environment.

Implementation and Support Mechanisms
•    Virtual Help Desk: A special virtual help desk will be set up by PSIEC to assist industrial promoters in availing the scheme.
•    Hassle-Free Process: The government aims to ensure a smooth and transparent process for applicants.
•    Deadline for Application: Industrialists can avail of this scheme until December 31, 2025, providing ample time for defaulters to clear their outstanding dues.

Conclusion
The introduction of the One-Time Settlement (OTS) scheme marks a significant step in resolving long-pending industrial disputes in Punjab. This move is expected to spur industrial growth, strengthen the state's economy, and reaffirm the government's commitment to supporting businesses and job creation. With this initiative, Punjab aims to build a more robust and investor-friendly industrial ecosystem, setting the stage for long-term economic prosperity.

CM’S QUOTE 
“The era of harassment of the industry is over and the state government is now acting as a facilitator to the industrial sector.”

Bhagwant Singh Mann, Chief Minister, Punjab