CICU Urges Punjab Government to Simplify Industrial Building Plan Approval Process

Ludhiana, July 14, 2026: The Chamber of Industrial & Commercial Undertakings (CICU) has highlighted key challenges faced by industries in obtaining building plan approvals, stating that despite the Government of Punjab's progressive reforms under the Industrial & Business Development Policy 2026, procedural delays continue due to multiple approving authorities, overlapping regulations, and varying fee structures.
Single-Window Approval Needed
CICU pointed out that prior to June 2018, industrial building plans were approved solely by the Department of Factories. However, after the implementation of the Punjab Urban Planning and Development Building Rules (PUPDR), 2018, industries are now required to obtain approvals under two separate regulatory systems.
The Chamber has urged the Government to restore a single-window approval mechanism through the Department of Factories, allowing all planning parameters to be verified within one integrated process, thereby reducing delays and improving ease of doing business.
Clarification on Regularisation Policy
CICU also raised concerns regarding the regularisation policy notified on June 11, 2026, stating that ambiguity over its applicability has created uncertainty among industrial units.
The Chamber has requested the Government to extend one-time relief to:
•    Units constructed as per approved bye-laws but unable to complete approvals within the prescribed timeline.
•    Units established after October 2023 that are currently outside the policy's ambit.
Uniform Compounding Charges Required
Another major issue highlighted by CICU is the wide variation in compounding charges levied by different government departments. While PSIEC and Local Government follow relatively moderate rates, industries outside municipal limits and PSIEC industrial estates face significantly higher charges.
CICU has urged the Government to introduce a uniform and rationalised compounding policy across all departments to encourage voluntary compliance and reduce the financial burden on industries.
Upkar Singh Ahuja, President, CICU, said "Punjab's industries are committed to complying with statutory requirements. However, multiple approval authorities and varying compounding charges make the compliance process unnecessarily complex. A simplified, transparent, and unified approval mechanism will reduce delays, improve compliance, and enhance government revenue."
CICU believes these reforms will significantly strengthen Punjab's ease of doing business and promote faster industrial growth and investment.