The Punjab government has finally lifted a ban on setting up of new steel units and expansion in the existing units in Mandi Gobindgarh, the steel town of Punjab.

Talking to FE here on Monday Vishawjit Khanna, secretary, Science and Technology, said, ?Punjab has lifted the ban on setting up of new units or existing units seeking expansion in their capacity following a notification issued by the Union environment ministry?.

Khanna said, ?Punjab government has now sent an Action Report in case of Ludhiana steel units to the environment ministry and has sought lifting of the moratorium on the setting up of new units there?.

Sources said, ?The environment and forests ministry had imposed moratirum on 43 industrial clusters in the country. The ministry has lifted the moratorium on new industrial projects in five critically-polluted industrial clusters in the country, including Coimbatore, Vapi (Gujarat), Patancheru-Bollaram (Andhra Pradesh), Tarapur (Maharashtra) and Mandi-Govindgarh (Punjab)?.

The action followed the submission of action plans by the state pollution control boards to monitor and keep in check the pollution levels in these clusters. At the same time, ?The environment and forests ministry has further extended the moratorium on the remaining 38 clusters until March 31, 2011?. Among the areas where the moratorium will continue are the three polluted clusters in Tamil Nadu?Vellore, known for tanneries, Cuddalore, where chemical industries are predominant and Manali near Chennai, dotted with refineries?.

The ban in case of Punjab was imposed by the environment ministry following reports of ?non-adherence to environment protection measures by Mandi Gobindgarh and Ludhiana units?.