Punjab Cabinet takes major decisions: OTS extension for industries, flood relief compensation, new Excise Policy approved
Babushahi Bureau
Chandigarh, February 23, 2026: The Punjab Cabinet, chaired by Chief Minister Bhagwant Mann, on Monday took several key decisions aimed at boosting industrial growth, providing relief to farmers, strengthening healthcare, and enhancing revenue generation.
Addressing the media after the meeting, Finance Minister Harpal Singh Cheema outlined the major approvals.
In a major relief to the industrial sector, the Cabinet extended the One-Time Settlement (OTS) Scheme until June 30, 2026. Pending cases related to PSIEC and industrial plots can now be settled within the extended deadline. The move is aimed at strengthening Punjab’s industrial environment and easing the financial burden on entrepreneurs.
The Cabinet also cleared legal hurdles in distributing compensation to flood-affected farmers in border districts including Firozpur, Fazilka, and Amritsar. Since many cultivators’ names were not recorded in girdawari or ownership documents, a three-member committee comprising the Sarpanch, Numberdar and Patwari will conduct on-ground assessments to identify the actual cultivators. Compensation will be released based on their report. The decision is expected to benefit around 5,200 acres in Firozpur, 250 acres in Amritsar and large affected areas in Fazilka.
In another significant move, the Cabinet approved incentives for volunteers who served during the COVID-19 pandemic. In nursing and paramedical recruitments, those who worked for less than one year will receive five additional marks, while those who served for more than one year will receive ten additional marks. The Cabinet also approved the recruitment of 361 staff nurses to strengthen the healthcare system.
The new Excise Policy for 2026–27 was also approved, setting a revenue target of ₹12,800 crore, compared to ₹6,200 crore in 2022. The government stated it has acted against the liquor mafia and ensured revenue growth. Existing groups will be allowed renewal with a 6.5 percent increase. For the first time, rules have been framed to allow malt manufacturing (single malt) units in Punjab, enabling both distilling and bottling within the state.
To intensify action against gangsters and drug traffickers, the Cabinet approved a hike in reward amounts for police officials — ₹1 lakh at the SSP level, ₹1.5 lakh at the IG/DIG range, and above ₹2 lakh at the ADGP/DGP level.
Finance Minister Cheema also confirmed that the Budget Session of the Punjab Legislative Assembly will be held from March 6 to March 16, with the state Budget to be presented on March 8.
Among other decisions, two new expert posts were created in the Economic Policy and Planning Board, taking the total to five. For timely completion of highway projects, a rate of ₹3 per cubic foot has been fixed for soil and material procurement on a nomination basis. Of the ₹380 crore pending from the previous Akali-BJP government era, ₹19 crore has been recovered and properties worth ₹90 crore have been attached.
Concluding the briefing, the Finance Minister said the Aam Aadmi Party government is safeguarding every rupee of the state treasury and ensuring that public funds are spent on public welfare.