Ludhiana: Punjab Chief Minister Bhagwant Mann launched the much-anticipated Industrial and Business Development Policy 2026 in Ludhiana, aiming to create a seamless, transparent, and business-friendly environment for investors. The policy is designed to strengthen ease of doing business in the state and promote industrial growth while generating new employment opportunities for the youth.
Key Incentives for Investors and Industries
The policy, formulated after extensive consultations with industrialists and stakeholders, offers a wide range of incentives:
- Capital subsidy for new units and modernization of existing industries
- Relief in electricity duty and State GST refunds
- Stamp duty exemptions for land acquisition
- Special incentives for employment generation, including ₹3,000 per employee per month, and ₹5,000 per employee per month for IT sector units
- Additional 25% incentives for industries set up in border districts
- Zero Liquid Discharge (ZLD) projects to receive 100% exemption
CM Mann emphasized that the policy also supports women’s employment, allowing safe night shifts with security arrangements by industries.
Focus on Emerging Sectors
The policy prioritizes sectors critical to the global economy, including:
- Information Technology (IT)
- Electric Vehicles (EVs)
- Startups and innovation-driven enterprises
- Semiconductors
- Research and Development (R&D)
The state government aims to align Punjab with global industrial trends and attract higher investments.
Streamlined Governance and Industry Support
CM Mann highlighted that all departments related to industry—electricity, local bodies, and industrial development—have been integrated into a single platform to ensure faster approvals and smoother operations. He stated, “The government is not here to take a share from entrepreneurs but to support industries and provide a runway for growth. Now, it’s the industry’s turn to take off and generate employment for Punjab’s youth.”
He added that the policy incorporates 78% of suggestions from entrepreneurs, reflecting their active participation in policy formulation.
Major Industrial Investments and Development Projects
- Tata Steel is set to invest ₹3,200 crore in a new plant in Ludhiana, beginning operations on March 20, 2026
- The state will also establish Skill Development Institutes to train youth as per industrial requirements
- Flights from Halwara Airport are expected to commence by the end of this month, enhancing connectivity for industrial growth
CM Mann emphasized the importance of industrial development for the state’s overall growth, stating, “Without making Punjab number one, India cannot become a world leader. Industries fuel the economy and sustain thousands of families.”
Commitment to Employment and Women Empowerment
The policy categorizes units investing ₹25 crore with at least 50 employees under the threshold category, offering extended incentives for up to 15 years. Women workers will receive special provisions for safe working conditions at night, reflecting the government’s focus on inclusive growth.
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