Industrial Plots in Punjab Can Now Be Converted Into Hotels & Hospitals – Big Boost for Real Estate & Investors

In a game-changing move for Punjab’s real estate sector, the state government has approved a major policy amendment that now allows industrial plots to be converted into hotels, hospitals, industrial parks, and other permissible establishments.

This change, approved by the Punjab Cabinet under CM Bhagwant Mann, opens up exciting new opportunities for investors, developers, and landowners across key locations like Mohali, Chandigarh, Kharar, Ludhiana, and Amritsar.

What’s New in the Policy?

The decision comes after feedback from industrial associations who had raised concerns over the restrictive nature of earlier conversion policies (2008, 2016, and 2021). In response, a committee reviewed the demands and suggested practical changes, especially for freehold plots.

Here’s what’s changing:

• ✅ 12.5% Conversion Fee will be applicable (based on industrial reserve price)

• ✅ Leasehold plots can now be converted to freehold—especially those under Punjab Small Industries & Export Corporation

• ✅ This policy aims to streamline industrial estate management and make it easier to repurpose under-utilized land

Why This Matters for Developers and Investors

For years, many industrial plots across Punjab have remained unused or underutilized due to zoning restrictions. With this policy update, owners can now convert their industrial plots into commercial spaces like hospitals, hotels, or even mixed-use developments.

This is a huge win for:

• Real estate developers looking to build hospitality or healthcare projects

• Investors seeking new avenues for ROI on industrial land

• Landowners who can now unlock better value from their properties

Additional Key Reforms You Should Know

The Cabinet also made several other administrative updates:

•  Updates to the MSE Facilitation Council Rules to speed up payment dispute resolutions under MSME

•  Amendments to Junior Engineer recruitment rules in the Water Resources Department, making it more inclusive

• A major restructuring of finance-related directorates to improve administrative efficiency and save over ₹2.64 crore annually

Bottom Line

This new policy is expected to revitalize Punjab’s industrial zones and transform how real estate is developed in the region. Whether you’re an investor looking to convert industrial property into a hotel or a healthcare provider planning a new facility, now is the perfect time to act.

At Aqlet Realty, we’re here to help you navigate these changes and make the most of this opportunity. Contact us today for site visits, approvals, and tailored investment strategies across Mohali, Chandigarh, Kharar, and nearby areas.