Punjab CLU & EDC Waiver: Anchor Units

Under Clause 12.9 of the Industrial and Business Development Policy 2022 of Punjab, Anchor Units are fully exempted from Change of Land Use (CLU) and External Development Charges (EDC). These charges are statutory levies assessed per acre and become payable when private land is converted to industrial use. Since anchor projects generally assemble large land parcels, the total amount involved is substantial in absolute terms.

The relief is extended in one of two ways: either as an upfront exemption at the point when CLU permission is granted, or as a reimbursement in cases where the charges have already been deposited.

1. Obtain Anchor Unit status for the project from the Government of Punjab, in accordance with the Industrial and Business Development Policy 2022. 2. Submit an application for CLU permission for the project site to the competent authority. 3. Lodge the CLU/EDC exemption application on the Invest Punjab Business First portal, attaching the site plan, the anchor approval and the land papers. 4. Where the charges have already been paid, submit a reimbursement claim together with the challans. 5. Following verification, the department either issues the exemption or sanctions the refund.

Anchor Unit status is conferred by the State at the point when a project receives approval. After this designation is in place, the exemption operates as an administrative matter: the department checks the CLU/EDC demand raised against the project site, then either waives it or returns the amount in full.