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Ludhiana: Nearly 10k units fear closure as mixed land use policy expiry nears
Introduced in 2008 by the Shiromani Akali Dal government, the policy allowed industrial units to function in residential zones following complaints from entrepreneurs about operational hurdles
With the mixed land use policy set to expire in September, nearly 10,000 small and medium industrial units operating from residential areas in Ludhiana face uncertainty, with industry bodies warning of potential shutdowns and large-scale job losses if the policy is not extended.
Introduced in 2008 by the Shiromani Akali Dal government, the policy allowed industrial units to function in residential zones following complaints from entrepreneurs about operational hurdles.
“The policy enabled smooth functioning of these factories that form the backbone of the city’s industrial power,” said Gurmeet Singh Kular, president of the Federation of Industrial and Commercial Organisation (FICO).
According to Kular, around 10,000 such units spread across 72 localities employ lakhs of workers and supply essential components to the city’s cycle and sewing machine industries. He warned that any disruption could hit both employment and production.
The policy, initially meant for 10 years, was to be accompanied by the development of an alternative industrial hub, with Dhanasu identified for the purpose. However, the project failed to materialise in time, leading to extensions by successive governments in 2018 and again in 2023.
With no provision in this year’s budget for developing a new industrial area, industry representatives say an immediate extension is the only viable short-term solution. “If the policy isn’t extended, lakhs of workers will be affected and larger industries will struggle to source parts,” Kular said.
Leaders of industrial bodies said they are in talks with the state government and chief minister Bhagwant Mann has assured a resolution soon.
