Industrial entry fees cut in Punjab, win for small business.

Ludhiana: The Punjab govt has made a U-turn on its controversial industrial application fees, slashing upfront costs for investors following fierce backlash from manufacturing groups.In a newly issued corrigendum to the Detailed Schemes and Operational Guidelines, 2026, the industries and commerce department amended a clause that threatened previously to stall new investment. The state has replaced the requirement for investors to pay the "higher" of two fee options with a "lower" cost cap, effectively capping application fees at ₹1 lakh.The Policy PivotUnder the original policy, investors were required to pay a non-refundable fee of either ₹1 lakh or 0.5% of their fixed capital investment (FCI) — whichever was higher. For large-scale projects, this meant application costs could have spiralled into a few crore rupees. The amended rule now mandates the "lower" of the two figures, providing significant financial relief to both existing firms and new entrants.Industry ResponseThe amendment follows sustained pressure from trade bodies, including the Federation of Industrial and Commercial Organisations (Fico), which argued the initial fee structure acted as a deterrent to growth. "The high upfront fee would have discouraged the small industry in particular from investing," said Fico president Gurmeet Singh Kular.Ashpreet Singh Sahni, Fico's organising secretary, described the change as a "welcome move", noting that the ₹1 lakh ceiling makes the state's industrial policy "bearable" for local entrepreneurs.While the application fee has been capped, the govt has restructured how technical audits are funded. Application fee remains payable online via the Industrial Common Application Form (I-CAF).The application fee will no longer absorb the audit fees for empanelled chartered accountants, who are tasked with verifying investment claims. Applicants must now pay chartered accountants separately at the time of submission, over and above the capped state fee.The move is seen as an attempt by the state govt to balance ease of doing business with a robust verification process for industrial subsidies.
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