ATIU Welcomes Punjab Govt’s IBDP Amendment Scrapping Bank Guarantees
December 21, 2025
ETT News / Ludhiana
The Association of Trade & Industry (ATIU) on Friday welcomed the Punjab Cabinet’s decision to amend the Industrial & Business Development Policy (IBDP) 2022 by removing the requirement of Bank Guarantees for availing fiscal incentives, a move expected to provide immediate liquidity relief to industrial units across the state.
ATIU President Pankaj Sharma said the earlier provision had forced industries to block large amounts of working capital, resulting in cash-flow constraints and slowing down expansion plans. He stated that industry bodies had repeatedly raised the issue with the government, citing its adverse impact on research and development, capacity enhancement, and employment generation.
Under the amended policy, the incentive related to exemption of stamp duty will now be secured through a First Charge on the concerned property until the commencement of commercial production, instead of a Bank Guarantee. Sharma said this mechanism protects the government’s interest while allowing entrepreneurs to deploy funds for productive purposes.
He added that for Change of Land Use (CLU) and External Development Charges (EDC) exemptions, the government has put in place an alternative safeguard system that removes the need for bank-backed security and reduces financial stress on businesses.
Sharma highlighted that the amendment will apply retrospectively from October 17, 2022, enabling units that had already applied under IBDP-2022 to benefit from the relaxed norms. He said the decision would strengthen ease of doing business in Punjab, improve industry confidence, and attract fresh investments, leading to faster industrial growth and job creation in the state.
Punjab Industry News IBDP 2022 Update Fiscal Incentives Relief CLU EDC Exemption Punjab Government Industry Policy
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