FICO Strongly Opposes Upfront Fee in Invest Punjab

Ludhiana, April 27, 2026: The Federation of Industrial & Commercial Organization (FICO) has strongly opposed the introduction of an upfront fee under the New Industrial Policy 2026 by the Government of Punjab under the Invest Punjab Scheme.
As per the new policy, an industrialist is required to deposit 0.50% of the Fixed Capital Investment as an upfront fee at the time of registration under the Invest Punjab Scheme. FICO has termed this provision as unjustified and has demanded its immediate review and rollback from Bhagwant Singh Mann Chief Minister Punjab and Sanjeev Arora Industry Minister Punjab. 
Gurmeet Singh Kular, President, FICO, stated that if an entrepreneur plans to invest ₹20 crore in setting up a new industrial unit, he would be required to pay ₹10 lakh as an upfront fee. He said that such a financial burden is unreasonable and acts as a deterrent to new investments. He emphasized that the main objective of Invest Punjab is to promote industrial growth and attract investment, but such charges will discourage potential investors and weaken the intent of the policy. Why is that the Government is seeking share from invest being made in Punjab? 
Ashpreet Singh Sahni, Organizing Secretary, FICO, added that the issue is not limited to new investments. Even those industrialists who are already registered under the Industrial Policy 2022 and wish to migrate to the Industrial Policy 2026 are required to pay this upfront fee. He termed this as unfair to the existing industry and called for its immediate withdrawal.
FICO further highlighted concerns regarding the One Time Settlement Scheme of PSIEC for conversion from leasehold to freehold. It stated that even original allottees are being asked to pay a hefty amount, which should instead be aligned with the original allotment price, with a reasonable one-time interest component. Additionally, in cases where an allottee only holds an allotment letter and seeks freehold conversion, they are first required to pay for the lease deed and then again for the freehold conversion. FICO questioned the rationale behind this double payment and urged the state government to review and simplify the process.
FICO has urged the Government of Punjab to reconsider these provisions in the larger interest of industrial growth and to create a more supportive and investor-friendly environment in the state.