Chandigarh: In Punjab, where land has long been a symbol of affluence and a source of contention, a new economic narrative is being penned—one where industrial aspirations confront soaring prices, and hope frequently battles with harsh reality.
The recent industrial plots auction by the Punjab State Industries and Export Corporation (PSIEC) has opened a window to the state’s dynamic investment environment. With 15 plots in Mohali being sold at jaw-dropping prices-more than three times the reserve price, the land under Punjab’s industrial story is getting hot. The bids, varying between ₹1.50 lakh and ₹1.65 lakh per square yard, surprised onlookers anticipating more subdued bids in light of the overall economic environment. The minimum prices were fixed at a reasonable ₹39,000 to ₹42,900 per square yard.
The May 26 to June 16 auction saw 50 out of 260 plots sold. While Mohali hogged the limelight, districts such as Pathankot and Goindwal Sahib also recorded a robust response, signifying that investor interest is spreading beyond traditional hubs.
Nevertheless, the thrill of the gavel is moderated by pragmatic issues. Industrialists throughout the state caution that increasing land costs, if not complemented by strong infrastructure, would risk strangulating industrial development instead of feeding it. The state’s 52 specified focus points—intended to become drivers of industrial activity—are said to be grappling with systemic problems including poor road conditions, inefficient drainage, and power supply deficiencies.
“Land price has now turned out to be the Achilles’ heel of industrial development in Punjab,” stated RS Sachdeva, ex-chairman of the PHDCCI. “For the investor, the math simply does not add up when civic infrastructure cannot justify the price tag.”
In response, PSIEC officials maintain that efforts are underway to upgrade the quality of infrastructure in these zones. “We’ve taken feedback seriously. A statewide infrastructure improvement initiative is already in motion. Investors will start witnessing improvements soon,” said a senior officer, striking a confident tone.
The success of the auction also indicates a shift in Punjab’s industrial direction. Mohali—previously considered a satellite to Chandigarh—has soon become a power center in its own right, drawing domestic as well as international investment. Pathankot, too, previously written off as a far-flung district, is attracting attention as a worthwhile investment opportunity with better connectivity and increased market activity.
Ironically, the city that missed out on the auction frenzy was Ludhiana—Punjab’s historic industrial hub. Not a single bid came for its 12 plots on offer, even in the state’s ambitious Hi-Tech Valley project. Similarly, silence greeted Raikot, close to Ludhiana airport, where 19 plots went unsold. Officials attribute this to the schedule of the Ludhiana West by-poll, stating political distraction would be partly responsible for the poor response. Industry observers, however, indicate far greater fatigue with substandard civic facilities in the city’s core areas.
The state’s industrial scene, it seems, is poised at a crossroads. On the one hand, there’s unmistakable economic investor steam, land hunger, and the urge to construct. On the other, the tired civic infrastructure and prices on steroids risk driving small and medium entrepreneurs into the periphery.
What results is a story of two Punjabs: one riding the wave of hope, based out of locations like Mohali and Pathankot; the other struggling with stasis, as in Ludhiana’s declined attractiveness. The work that lies ahead of policymakers and planners is imperative—to bridge this widening divide before the industrial potential of the state starts to sputter under its own momentum.
With the dust now settled on the auction, what is yet to be seen is whether Punjab will be able to translate this interest from investors into sustainable economic revival—or whether ground realities will drown the promise of progress in layers of lost opportunity.
