According to 2026 policy, new investors have to pay Rs1 lakh or 0.5% of fixed capital investment (whichever is higher)Ludhiana: Industrialists in Punjab are protesting a new 0.5% non-refundable upfront fee mandated under the state’s 2026 industrial guidelines. To avail of fiscal incentives, investors must now pay either Rs1 lakh or 0.5% of their fixed capital investment (whichever is higher) at the time of registration—a move industry leaders claim will deter new investment and stifle small businesses.Federation of Industrial & Commercial Organisation president Gurmeet Singh Kular and other representatives have appealed to CM Bhagwant Mann and industry minister Sanjeev Arora for an immediate rollback. They argue that charging a fee before any support is provided contradicts the spirit of the ‘Invest Punjab’ initiative, which is intended to attract, not tax, investors.The “entry-stage” financial burden is particularly hard on micro, small, and medium enterprises already struggling with tight liquidity. Critics point out that while the govt plans to spread out incentives over 10 to 15 years, it is demanding payment from the industry immediately.This is the first time such a fee has been introduced; the previous 2022 policy had no such charge. Business leaders noted that neighbouring states do not impose similar upfront costs, putting Punjab at a competitive disadvantage.The federation emphasised that the fee shifts all risk onto the investor, as the payment is non-refundable regardless of whether the project receives final approval. They have urged the govt to either scrap the clause or make the fee refundable to restore investor confidence.
