The renewed land-use charge is Rs 49 lakh per acre. Earlier, it was Rs 3.5 lakh per acre. “The Gujarat Government is inviting us to set up units and they are charging only Rs 50,000 per acre. The Punjab Government is encouraging us to move out or perish,” said S K Ralhan, Chairman, Engineering Export Promotion Council (EEPC). “At present, 200 hand tool units, which need immediate expansion, are mulling to invest in Gujarat.”

A notification in this regard was issued by the Department of Housing and Urban Development, Punjab, on August 17, 2007. No builder, however, has deposited the revised charges, as they are expecting that the government will reconsider the decision.

The land-use charges have been divided into three categories — external development charges (Rs 43,18,149), conversion charges (Rs 5,38,251) and license and permission fees (Rs 50,000) per acre.

“No one can think of setting up industrial units in the state. The EEPC has already written to the Industry and Commerce principal secretary,” said Ralhan, adding that many industrial units had already shifted to HP and Uttranchal. “Now, Gujarat is calling us,” he said.

Meanwhile, the Punjab Coloniser Association held a meeting with the Chief Minister on Monday to apprise him of the situation. Association general secretary Jatinderpal Singh Saluja said, “It has been informed to us that size of a colony shall not be less than 75 acre.” Earlier, the size of a colony was 10 acre.