Punjab's Invest Punjab policy poses significant threat to Punjab's economy and existing industries: World MSME Forum president Badish Jindal

Ludhiana, October 3, 2025: The Punjab government is making every effort to attract maximum investment to Punjab, but investment in many industries is proving to be a disaster rather than a relief for Punjab.

Stating this in a statement here today, World MSME Forum president Badish Jindal added despite the Punjab government's tireless efforts, most of the industries that have come to Punjab are those already established in Punjab. The steel industry, primarily the one established under Invest Punjab, has suffered significant losses.

He added the arrival of most of the steel companies under Invest Punjab has resulted in significant losses for hundreds of existing steel industries in Punjab.

Jindal said the majority of the profits from Invest Punjab are derived from excise duty and state GST on electricity. The steel industry consumes a significant amount of electricity, and each steel industry under Invest Punjab generates a monthly profit of ₹30 lakh to ₹1 crore. Due to this, it is cheaper for new industries to produce steel in Invest Punjab than for existing industries.

Adding, he said the World MSME Forum's investigation found that under the old investment policy, many steel industries had submitted false project reports to the Punjab government, claiming benefits worth crores of rupees, but neither did their production nor employment increase.

Jindal said when the World MSME Forum requested the Punjab government for an investigation in this regard in 2023, the Punjab government ordered the Industries Department to investigate the matter, but then the Industries Department stopped the investigation without any reason. Adding, he claimed, therefore, now once again the Chief Minister has requested to reorder to investigate the matter again, and the Chief Minister office has sent a letter to the Chief Secretary for taking action in this regard.

He said regarding the Invest Punjab policy, a letter has been written to the Chief Minister cautioning that the Invest Punjab policy should prioritize industries not already located in Punjab, as extending benefits to similar to the existing industries under the Punjab Investment Policy could lead to the closure of existing industries.

Concluding, Jindal said the establishment of these industries will not bring any economic benefit to Punjab, and such investments could prove to be a heavy burden on the Punjab treasury.