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Punjab Government to Acquire 1,500 Acres for Affordable Housing Development

The Punjab government has unveiled plans to acquire 1,500 acres of land to facilitate affordable housing for the Economically Weaker Sections (EWS). This initiative aims to provide accessible housing options in key cities such as Ludhiana, Mohali, Jalandhar, and Amritsar, reinforcing the government s commitment to supporting underserved communities. Land Acquisition and Development Strategy During a cabinet meeting on February 13, 2025, the Punjab government reaffirmed its focus on the optimum utilisation of land reserved for EWS . Under this scheme, undeveloped land in various housing colonies will be auctioned, generating funds to acquire new land for EWS housing. Finance Minister Harpal Singh Cheema stated that approximately 700 acres of scattered land across different colonies will be sold to raise sufficient revenue for the development of new EWS housing zones in major urban areas. Developer Regulations and Compliance According to Punjab s housing regulations, developers are required to allocate five percent of their project land for EWS housing. However, government sources reveal that no plots have been assigned to EWS beneficiaries since 1995. The current initiative aims to rectify this and ensure proper implementation of housing policies. Infrastructure Development Through External Development Charges The government has also announced plans to utilize External Development Charges (EDC) collected from developers under the Punjab Apartment and Property Regulation Act (PAPRA 1995) for urban development. Under this policy: 50% of the EDC collected will be invested in infrastructure improvements within the township s vicinity. The remaining 50% will be allocated for major state-wide development projects. Impact on Real Estate and Urban Growth This large-scale housing initiative is expected to boost urban development and attract investment in Punjab s real estate sector. By ensuring proper land utilization and reinvesting collected funds into infrastructure, the government is facilitating long-term growth and improving housing accessibility for the EWS population. This move positions Punjab as a proactive state in addressing housing challenges while promoting sustainable urban development.