Punjab to Table Key Bills to Strengthen Urban Infrastructure and Planned Development

Punjab is set to introduce two landmark Bills in the Vidhan Sabha on Tuesday aimed at reshaping urban development and strengthening civic infrastructure across the state.

Focus on Revenue Mobilisation and Urban Growth

The Punjab Town Improvement (Amendment) Bill, 2025 and the Punjab Apartment and Property Regulation (Amendment) Bill, 2025 are expected to play a pivotal role in unlocking the financial and developmental potential of Punjab’s towns and cities.

The first Bill seeks to generate revenue from the sale of unused or disputed properties under 23 improvement trusts. These funds, currently lying idle or entangled in legal and administrative issues, will be channelled into the Municipal Development Fund to support infrastructure projects in 167 civic bodies across the state.

Previously, under the Punjab Town Improvement Act of 1922, improvement trusts could not utilise their funds beyond their designated jurisdictions. The amendment now proposes to allow transfer of funds to the municipal development fund, giving the state government greater flexibility in financing urban projects where they are most needed.

Unlocking Idle Assets

Improvement trusts in major cities — including Ludhiana, Jalandhar, Amritsar, Patiala, and Rajpura — collectively hold properties worth crores of rupees. Many of these properties have remained unauctioned for years due to administrative hurdles, staff shortages, or inadequate infrastructure.

Officials from the Department of Local Government say the amendment will help the government monetise unutilised or disputed assets, ensuring the proceeds are directed toward city development projects such as road repairs, sanitation upgrades, and housing schemes.

“Large parcels of land and properties are currently either encroached upon or stuck in litigation. With this amendment, the state can finally use those funds for the betterment of urban residents,” said a senior department official.

Promoting Planned Urbanisation

The Punjab Apartment and Property Regulation (Amendment) Bill, 2025 aims to strengthen the framework for planned colony development. It will tighten the rules for property developers and ensure that future urban growth follows regulated planning standards — a step seen as crucial to curbing unregulated construction and ensuring sustainable city expansion.

Cabinet Approval and Legislative Push

Earlier this month, the state Cabinet gave its nod to add Clause 69-B to the 1922 Act. The new clause formalises the process for transferring proceeds from land or property disposals by improvement trusts into the municipal development fund, a move expected to provide a financial lifeline to cash-strapped urban local bodies.

A Broader Legislative Agenda

Apart from the two major urban development Bills, the Punjab Government will also table several other amendments in this legislative session. These include the Seeds (Punjab Amendment) Bill, 2025, the Punjab Right to Business (Amendment) Bill, 2025, the Punjab Goods and Services Tax (Amendment) Bill, 2025, and the Punjab Co-operative Societies (Amendment) Bill, 2025.

Together, these Bills reflect the government’s broader push to modernise the state’s economic, business, and civic governance framework.

A Step Toward Urban Renewal

Experts see the proposed amendments as a long-overdue reform in Punjab’s urban planning and infrastructure policy. By consolidating funds and streamlining property utilisation, the government hopes to revitalise towns and cities, making them more livable and economically vibrant.

If approved, the Bills could mark a significant turning point in how Punjab finances and manages its urban development — shifting from piecemeal improvements to a more coordinated, resource-efficient model of growth.