Punjab Chief Minister Bhagwant Singh Mann on Saturday laid the foundation stone for a ₹137-crore rural link road project in the border constituency of Khemkaran and said the AAP government was focusing on strengthening infrastructure, employment opportunities and improved public services in border regions. He also highlighted progress in canal irrigation, employment generation and education reforms.

Addressing a massive gathering after laying the foundation stone, CM Bhagwant Mann stated, “From roads to schools to playgrounds and industry, I assure you that my government is committed to ensuring everything in this area. Successive governments ignored the development of border areas, but the AAP government has made dedicated efforts for their progress. We are committed to the welfare of the residents of these regions who are true patriots of the country.”

The Punjab CM said that for the first time in the history of Punjab, the industrial policy of the state provides incentives to industrialists willing to establish units in border areas. “Nine thrust sectors and borders as well as Kandi areas are being given 25 percent additional incentives. Border districts such as Pathankot, Gurdaspur, Amritsar, Ferozepur and Fazilka have historically seen lower investment due to perceived geographical risks,” he said.

Emphasising employment generation, CM Bhagwant Singh Mann added, “We want to place a tiffin in the hands of our youth by providing them employment so that they stay away from syringes and the menace of drugs. Idle hands are the devil’s workshop, so we are making every effort to ensure that youth get jobs and do not fall prey to social evils. The AAP government has already provided more than 63,000 government jobs to the youth.”

Highlighting achievements in irrigation, he continued “When we assumed office, only 21 percent canal water was being used for irrigation. Today this figure has risen to 68 percent and it will reach 85 percent by the coming paddy season. 6,900 kilometres of canals and 18,349 watercourses have been revived to ensure water reaches tail-end farmers.”

The Punjab CM also said that the state government has spent Rs 6,500 crore to rejuvenate the canal system, enabling canal water to reach 1,365 villages for the first time, and added that work on constructing more than 49,000 kilometres of roads is underway at a cost of Rs 16,209 crore to improve rural connectivity.

Speaking about the education sector, CM Bhagwant Singh Mann said, “Schools of Eminence have been established across the state to provide quality education with smart classrooms, modern laboratories and playgrounds. Teachers and principals are being sent abroad for specialised training so that students can compete globally. It is a matter of immense pride that Punjab has ranked first in the National Achievement Survey conducted by the Government of India, surpassing even Kerala.”

He added that students are also being given specialised coaching for competitive examinations such as Armed Forces preparation, NEET, JEE, CLAT and NIFT, and said that students from Schools of Eminence and other government schools have already qualified for JEE Mains, JEE Advanced and NEET.

The Punjab CM also highlighted welfare initiatives of the state government. “The Mukh Mantri Sehat Yojna has been launched to provide cashless treatment of up to Rs 10 lakh for all 65 lakh families in the state. Punjab has become the first state to provide free healthcare to all citizens, while 881 Aam Aadmi Clinics are providing free treatment daily,” he said. He added that around 90 percent of households in Punjab are receiving free electricity.

He further announced that the state government will soon implement the scheme to provide ₹1000 per month to every woman. “Necessary provisions will be made in the upcoming budget and every promise made to the people will be fulfilled,” he said.

Taking a dig at the Congress party, CM Bhagwant Singh Mann stated, “The Congress is a divided house that will collapse due to its own infighting. Their leaders dream of returning to power but they neither have vision nor unity. They forget that 60 seats are required to form a government in Punjab, which is a distant dream for them. Their leaders cannot even manage basic arithmetic.”

Training his guns on Shiromani Akali Dal leadership, the Punjab CM added, “Akali leaders have nothing to offer except a roadmap to loot and harass the common man. They patronised gangsters and shielded drug smugglers during their rule. They have repeatedly misused religion for their vested political interests, but people of Punjab will not be misled by them again.”

The Punjab CM said that the renovation of 209 rural link roads in the Khemkaran constituency has been initiated under a project covering 275 kilometres at a total cost of Rs 137 crore 22 lakh. “An amount of Rs 127 crore 84 lakh will be spent on renovation and Rs 9 crore 38 lakh will be used for maintenance over the next five years. Additional work on link roads spanning more than 249 kilometres in the Khemkaran constituency is also underway with an expenditure of Rs 35 crore 23 lakh,” he said.

Reiterating the commitment of the AAP government, CM Bhagwant Singh Mann said, “Our government will leave no stone unturned to ensure the welfare of every section of society and the comprehensive development of Punjab.”

Punjab Chief Minister Sardar Bhagwant Singh Mann on Saturday unveiled the landmark Industrial & Business Development Policy 2026 in Ludhiana, asserting that his government is determined to make Punjab the No. 1 investment destination in the country through bold reforms and a flexible incentive framework designed around the needs of industry. The Chief Minister asserted the Punjab Government has fundamentally restructured its industrial policy to accelerate industrial growth, attract large-scale investment and generate employment across Punjab.

Highlighting that Punjab is already witnessing record investment, the Chief Minister said the new policy allows investors to choose up to 20 incentives and design customised packages suited to their business models, introduces capital subsidy for the first time in Punjab, offers incentives of up to 100% of Fixed Capital Investment and reduces Employment Generation Subsidy eligibility to ₹25 crore investment and 50 workers, thereby opening industrial incentives to a much wider base of businesses while strengthening Punjab’s position as a leading destination for manufacturing, services and emerging technology sectors.

Addressing the gathering, CM Bhagwant Singh Mann said that the policy represents a major shift in the way industrial incentives are structured in Punjab. “Every other state in India hands investors a fixed menu and says take it or leave it, but Punjab has changed that. Now an investor can pick up to 20 incentives and build a package around their own business model.”

Explaining the rationale behind this approach, the Chief Minister said that different industries have different operational realities and cost structures. “Pharmaceutical companies need different support than an EV manufacturer, a data centre has different costs than a textile plant. The new policy acknowledges that and builds around it.”

He said the framework allows investors to optimise incentives according to their sector, cost structure and scale of operations. “The incentive package can be optimised for their specific cost structure, their specific sector and their specific scale. That is money on the table that wasn’t there before.”

Highlighting another major feature of the policy, the Chief Minister stated that for the first time in Punjab’s history the government has introduced a capital subsidy. “If someone is planning a ₹100 crore plant, without capital subsidy ₹100 crore is their risk. With capital subsidy, the government co-invests a portion upfront and their capital at risk drops.”

He added this significantly improves investment economics. “This means the same revenue with lower investment. Punjab is the first state in the country to offer that.”

The Chief Minister further observed that most industrial policies in other states are largely designed to attract new investors while existing businesses often receive little attention. “Most industrial policies in other states are drafted for outsiders with new investors, greenfield projects and companies being wooed from other states. Businesses already operating, already paying taxes and already employing people are usually an afterthought.”

He said the new policy corrects this imbalance by extending incentives to modernisation and expansion projects as well. “Punjab’s new policy changes that as modernisation and expansion projects are now eligible for incentives. A Ludhiana manufacturer who wants to upgrade machinery, add a production line or expand capacity now gets policy support alongside new investors.”

The Chief Minister also highlighted that the policy provides long-term stability to investors through an extended incentive period. “Incentive support has been extended up to 15 years whereas most state policies run five to 10 years.”

He said this provision is particularly important for capital-intensive sectors. “This is a big boon for heavy industry, semiconductors, pharmaceuticals, data centres and others as these are not businesses that return profit in year two but they are decade-long commitments.”

Explaining the financial significance of this provision, he stated, “Fifteen years changes the Net Present Value along with the total present value of all future incentives dramatically. For capital-intensive sectors this could be the single most important number in the entire policy.”

The Chief Minister further asserted that the definition of Fixed Capital Investment has been expanded, which will increase the base on which incentives are calculated. “Fixed Capital Investment has been redefined as the base on which all incentives are calculated and it now includes land, labour housing, R&D facilities, effluent treatment plants, sewage treatment plants and zero liquid discharge systems.”

He said this ensures that investments in sustainability and compliance are financially supported. “Every rupee the investors spend on building a compliant, sustainable facility now works harder for them. Incentives will now be calculated on a larger base. Punjab has made compliance financially rewarding.”

The Chief Minister noted the policy also focuses on making industrial incentives more accessible to smaller businesses. “Employment Generation Subsidy eligibility has been reduced to ₹25 crore investment and 50 workers.”

He explained that earlier thresholds excluded many small and medium enterprises. “Previously the threshold was higher keeping many small and medium businesses outside the subsidy framework.”

Emphasising the importance of smaller industries to Punjab’s economy, he said, “Punjab’s industrial backbone is not only large plants. It is the thousands of small manufacturers in Ludhiana, Jalandhar, Batala and Gobindgarh who employ 30, 40 or 50 people on thin margins.”

“By bringing them inside the EGS framework, we are putting real money into the businesses that employ the most workers per rupee of investment,” he added.

The Chief Minister said the policy also promotes inclusive employment practices. “Punjab has made inclusion a financial decision, not just a social one by ensuring higher Employment Generation Subsidy for businesses employing women, SC/ST and Persons with Disabilities workers and for IT/ITeS and GCC units.”

He added that this aligns with the expectations of global investors. “For companies with ESG commitments and global investors watching diversity metrics, this is a policy feature that speaks directly to boardroom priorities in 2026.”

The Chief Minister further said that the government has introduced additional incentives to promote industrialisation in regions that require greater investment. “Twenty-five percent additional incentives have been provided for nine thrust sectors and for industries located in border and Kandi areas.”

He said border districts such as Pathankot, Gurdaspur, Amritsar, Ferozepur and Fazilka have historically seen lower levels of investment. “These districts have historically seen lower investment because of perceived geographical risk. Punjab is now compensating investors for that risk in rupees, not reassurances.”

“For a first-mover willing to set up in these areas, the incentive stack becomes genuinely compelling,” he added.

The Chief Minister also announced that several key sectors will now have dedicated policy frameworks. “IT/ITeS, GCC, EVs, ESDM, semiconductor, filmmaking, tourism and others each gets a dedicated sectoral policy.”

He said these policies have been prepared through extensive industry consultations. “Not a paragraph in an omnibus document but a standalone framework built by an industry committee chaired by a sector expert. This means the government has consulted the industry and built incentives that fit their cost structure.”

Highlighting Punjab’s growing investment momentum, the Chief Minister said that since 2022 Punjab has attracted ₹1.55 lakh crore in investment, of which ₹55,000 crore came in the last year alone.

“Tata, Infosys, Vardhman, Trident, HMEL and Fortis are all committing investment in the same twelve month window,” he said.

He further said that under the policy investors can avail incentives up to 100 percent of their Fixed Capital Investment including land, machinery, buildings, R&D and ETP. “The policy is designed so that the Punjab Government’s growth and the investor’s return move together.”

The Chief Minister said that the policy was launched in the presence of nearly 200 leading industrialists, industry leaders and representatives from various sectors, reflecting strong industry participation and confidence in Punjab’s industrial growth trajectory.

Describing the initiative as one of the most progressive industrial policy frameworks in the country, he added that the policy will significantly strengthen Punjab’s position as a leading destination for manufacturing, services and emerging technology sectors.

The Chief Minister said the policy also strengthens the startup ecosystem through enhanced startup seed grants and the establishment of a Government Startup Hub in Mohali.

He further said that freight and marketing subsidy support has been introduced to promote exports from Punjab and that a customised package committee has been established to facilitate mega investment projects.

The Chief Minister added that major reforms have also been introduced in power supply, labour regulations and building approvals to further improve ease of doing business. “This policy sends a clear message to investors across India and the world that Punjab is open for business. With one of the most comprehensive incentive frameworks in the country, the state is creating the right ecosystem for industry to grow, invest and generate employment.”

The Chief Minister said the policy represents a significant shift in empowering investors. “For the first time this policy truly puts the power in the hands of investors. Investors can choose the incentives they want to avail and the time period over which they wish to avail them.”

“This flexibility and investor-driven framework is unprecedented and reflects Punjab’s commitment to becoming the most investor-friendly state in India.”

Reaffirming the broader vision behind the initiative, the Chief Minister said that the Industrial & Business Development Policy 2026 will play a transformative role in accelerating industrial growth, strengthening Punjab’s competitiveness and creating large-scale employment opportunities for the youth of Punjab.

In his address, Minister for Power, Industries, Commerce, and Investment Promotion Minister Sanjeev Arora invited domestic and global investors to explore opportunities in Punjab and participate in the Progressive Punjab Investors’ Summit 2026 scheduled to be held from 13–15 March 2026 at Plaksha University in Mohali. “In this summit the state will showcase its new industrial vision and investment opportunities,” said Minister Sanjeev Arora.

The policy introduces a number of significant features that fundamentally reshape how industrial incentives are structured in Punjab.

Key Features of Punjab’s New Industrial Policy

• Investor-designed incentive packages

For the first time, investors will be able to select up to 20 incentives and create customised incentive packages suited to their own business models. This flexible framework recognises that industries such as pharmaceuticals, electric vehicles, data centres and textiles operate with very different cost structures, allowing incentives to be optimised according to sector, scale and operational requirements.

• Capital subsidy introduced for the first time in Punjab

The Punjab Government has introduced capital subsidy for the first time in the state’s history. This effectively allows the government to share part of the upfront investment burden, reducing capital risk for investors and improving the Internal Rate of Return of projects even before production begins.

• Existing industries now eligible for incentives

The policy recognises the contribution of industries already operating in Punjab. Modernisation, machinery upgrades, capacity expansion and new production lines undertaken by existing manufacturers will now qualify for incentives, placing them on equal footing with new investors.

• Incentive support extended up to 15 years

Incentive support under the policy can extend up to fifteen years, significantly longer than the typical five to ten year support period offered by many other states. This makes Punjab particularly attractive for capital-intensive sectors such as semiconductors, pharmaceuticals and data centres that require long gestation periods before generating returns.

• Expanded definition of Fixed Capital Investment

The policy expands the definition of Fixed Capital Investment, which forms the basis for calculating incentives. Investments in land, labour housing, research and development facilities, effluent treatment plants, sewage treatment plants and zero liquid discharge systems will now be included, ensuring that investments in sustainable and compliant infrastructure contribute to the incentive base.

• Greater support for small and medium enterprises

Eligibility for Employment Generation Subsidy has been reduced to ₹25 crore investment and 50 workers. This change brings thousands of small and medium manufacturing units into the incentive framework, particularly in industrial clusters such as Ludhiana, Jalandhar, Batala and Gobindgarh where many businesses operate with workforces of 30 to 50 employees.

• Inclusion linked to financial incentives

Higher Employment Generation Subsidy will be available for companies employing women, Scheduled Castes, Scheduled Tribes, persons with disabilities and workers in IT, ITeS and Global Capability Centres. By linking incentives to workforce diversity, the policy integrates inclusion into the financial architecture of industrial development.

• 25 percent additional incentives for thrust sectors and priority regions

Nine thrust sectors as well as border and Kandi regions will receive an additional 25 percent incentive support. Border districts such as Pathankot, Gurdaspur, Amritsar, Ferozepur and Fazilka will benefit from these enhanced incentives aimed at encouraging industrial activity in historically underinvested regions.

• Flexible incentive period based on project timelines

Investors will have the option to extend their incentive support period up to fifteen years and can decide when their incentive window begins depending on the gestation period of their project. This allows incentives to align with the actual lifecycle of investments rather than fixed policy timelines.

• Dedicated sectoral policies introduced

Separate policy frameworks have been launched for major sectors including IT and ITeS, Global Capability Centres, electric vehicles, electronics system design and manufacturing, semiconductors, filmmaking and tourism. Each sector now has a dedicated policy developed through consultation with industry experts and sector committees to ensure incentives align with sector-specific needs.

The new industrial policy comes at a time when Punjab is witnessing a significant rise in investment momentum. Since 2022, Punjab has attracted investment proposals worth ₹1.55 lakh crore, including ₹55,000 crore in the last year alone. Major companies including Tata, Infosys, Vardhman, Trident, HMEL and Fortis have expanded investments in Punjab, reflecting growing confidence in the industrial ecosystem being built by the Punjab Government.

With its focus on investor flexibility, long-term incentives, support for existing industries, inclusive employment strategies and targeted regional development, the New Industrial Policy represents a major step forward in strengthening Punjab’s industrial growth, job creation and economic transformation.

In a series of key policy decisions aimed at boosting higher education, industrial growth and governance reforms, the Punjab Cabinet led by Chief Minister Bhagwant Singh Mann on Saturday approved the establishment of a world-class university in the name of Sri Guru Teg Bahadur Ji at Sri Anandpur Sahib. The Punjab Cabinet also cleared the Industrial & Business Development Policy–2026 and approved recruitment of 1,158 Assistant Professors and Librarians in government colleges at a meeting of the Council of Ministers chaired by the Chief Minister.

Sharing details, the Chief Minister’s Office stated, “The CM Bhagwant Mann-led cabinet gave nod for setting up the university and approved the draft Bill for the ‘Sri Guru Teg Bahadur World Class University,’ which will be presented in the Assembly. The Cabinet also authorised the Chief Minister to take all necessary decisions for the timely establishment of the university.”

GO AHEAD TO NEW INDUSTRIAL & BUSINESS DEVELOPMENT POLICY, 2026

The Punjab Cabinet also gave a go ahead to the Industrial & Business Development Policy, 2026, along with sector specific policies, detailed schemes and operational guidelines under the flagship initiative “Punjab Udyog Kranti.”

The policy aims to establish a comprehensive and structured framework for fiscal incentives, sectoral development, employment generation, infrastructure strengthening and promotion of emerging and sunrise industries in the state. It is expected to give a major boost to economic activity and put Punjab on the path of high economic growth.

NOD TO POLICY FOR FURTHER STREAMLINING RESERVATION FOR SPORTSPERSONS IN GOVERNMENT JOBS AND ADMISSIONS IN EDUCATIONAL INSTITUTIONS

The Cabinet approved a policy to streamline reservation for sportspersons in government jobs and admissions in educational institutions. It lays down objective and easily understandable criteria for assigning marks to certificates of achievement in sports. As per the policy, 75% weightage will be given to achievements in sports while 25% weightage will be based on performance in the entrance test.

APPROVES AMENDMENT IN ‘THE PUNJAB HEALTH AND FAMILY WELFARE TECHNICAL (GROUP-C) SERVICE RULES, 2016’

The Bhagwant Mann-led Cabinet also approved an amendment in the Punjab Health and Family Welfare Technical (Group-C) Service Rules, 2016 to include Diploma in Pharmacy as an additional educational qualification for recruitment of pharmacists. This will enable diploma holders to apply for the post of pharmacist and help strengthen the delivery of quality healthcare services to the people of Punjab.

GREEN SIGNAL TO EX-GRATIA GRANT FOR MARTYR ASHOK KUMAR FROM PUNJAB HOME GUARDS

In a humanitarian gesture, the Cabinet approved an ex-gratia grant of ₹1 crore to the family of Martyr Punjab Home Guards Volunteer Ashok Kumar, No. 25140/GSP, as a special case. Ashok Kumar had recently laid down his life while performing duty at Gurdaspur. Recognising his immense contribution towards safeguarding the unity, integrity and sovereignty of the country, the Cabinet took this decision.

GIVES CONSENT TO INTRODUCE THE ‘THE PUNJAB REGULATION OF CRUSHER UNITS, AND STOCKIST AND RETAILERS (AMENDMENT) BILL, 2026’

The Cabinet also gave consent to introduce “The Punjab Regulation of Crusher Units, and Stockist and Retailers (Amendment) Bill, 2026” in the current session of the Assembly. The move aims to convert “The Punjab Regulation of Crusher Units, and Stockists and Retailers (Amendment) Ordinance, 2026” into an Act.

GIVES CONCURRENCE TO FILL 1,158 POSTS OF ASSISTANT PROFESSORS AND LIBRARIANS IN GOVERNMENT COLLEGES

In another major decision, the Cabinet gave concurrence to initiate a fresh recruitment process for 1,158 posts in Government Colleges across the state, including 1,091 Assistant Professors and 67 Librarians. The recruitment will be conducted strictly in accordance with UGC Regulations, 2018 through the Punjab Public Service Commission (PPSC). The government will withdraw the earlier requisition of 612 Assistant Professor posts pending with the PPSC and submit a fresh consolidated requisition for all posts.

To provide a fair opportunity to all candidates, including those who had applied under the October 19, 2021 advertisement, a one-time relaxation in the upper age limit will be granted. Reserved category candidates will receive additional age relaxation as per existing government policy.

WORLD CLASS MICE PROJECT AND MULTI-PURPOSE STRUCTURE APPROVED

The Bhagwant Mann-led Cabinet approved a world class MICE (Meetings, Incentives, Conferences and Exhibitions) project and a multi-purpose structure for organising commercial, scientific, educational and governmental events. Investors were facing difficulties due to lack of clarity regarding charges for MICE projects in the state. To address this, the government has included MICE projects as a separate category by amending the notification dated June 4, 2025 and fixed the applicable charges at 50% of the commercial charges.

NOD TO AMEND THE MEDICITY POLICY-2014

The Cabinet approved amendments in the Medicity Policy-2014 to allow certain sites to be disposed of through the existing policy and others through e-auction. The authority to decide which sites will go for e-auction has been delegated to the Minister, Housing and Urban Development Department.

The price of e-auction sites will be determined as per the Price Fixation Policy for e-auction plots, while sites allotted under the policy will be offered at the prevailing rates at the time of advertisement. Although eligibility conditions for participation in e-auction have been relaxed, land use will remain restricted to hospital purposes.

CONCURRENCE TO POLICY FOR ALLOTMENT OF EDUCATION PLOTS FOR SCHOOLS BY GMADA

The Cabinet also approved the Policy for Allotment of Education Plots for Establishment of K-12/Senior Secondary Schools by GMADA.

The policy has been formulated on the recommendations of Boston Consulting Group (India) to improve the e-auction process for sites under Greater Mohali Area Development Authority (GMADA)’s jurisdiction. It introduces technical eligibility criteria to ensure that only genuine and capable educational institutions acquire land for school development in the Greater Mohali region, including SAS Nagar (Mohali), New Chandigarh and Aerocity.

APPROVAL TO RATIONALISE THE PRICES OF PROPERTIES OF GLADA

The Cabinet also approved the rationalisation of property prices of Greater Ludhiana Area Development Authority (GLADA) based on valuation reports submitted by independent valuers and observations of GLADA. The revised rates will serve as base reserve prices for e-auctions, with allotment to be made to the highest bidder in accordance with the prevailing E-Auction Policy. These rates will remain valid for one calendar year and will thereafter be revised as per existing departmental policy.

NOD TO AMEND PUNJAB CIVIL SERVICES RULES

The Punjab Cabinet also approved an amendment to Rule 6.17 (3) of the Punjab Civil Services Rules, Volume-II to define family pension by including dependent disabled siblings of government employees. Accordingly, such dependent family members will now be entitled to the benefit of family pension.

APPROVAL TO ENACT THE PUNJAB PRISONS AND CORRECTIONAL SERVICES BILL, 2026 BY REPLACING MORE THAN 130 OLD YEARS ACT

The Bhagwant Mann-led Cabinet also approved enactment of the Punjab Prisons and Correctional Services Bill, 2026, which will replace the Prisons Act, 1894 currently in force in the state. The move aims to modernise prison administration and further strengthen jail security through the installation of advanced technology, gadgets and equipment, ensuring a more robust and foolproof security mechanism.