The Article-243(G) of 73rd Constitutional Amendment Act-1992 envisages Panchayats to undertake planning for economic development and social justice. The constitution mandates nodal role of Gram Panchayat with regard to local area planning which is an indispensable pre-condition for GP to function as “institution of local governance” and policy formulation at grass root, not as a mere implementing agency for plans and programmes. The Punjab Panchayati Raj Act, 1994 also empowers the Gram Sabha by assigning it important statutory roles such as approval of plans, programmes and projects for social and economic development prior to their implementation by the Gram Panchayat.

State Government Initiatives for Rural Development :

• The Punjab Government has launched `Mukh Mantri Pendu Vikas Yojana’ in 2016. The scheme envisages comprehensive development of villages through provision of basic amenities.
• Integrated Watershed Management Programme (IWMP) is being implemented in the state of Punjab to conserve and develop the natural resources of the land like soil and water, vegetation and its proper utilization for agriculture and to enhance the livelihood opportunities of landless community at village level. This scheme was initiated during the year 2009-10 in Punjab.
• The state government has notified a policy for providing 5 Marla Plots (125 Sq. Yard) to the rural households from the village common land. Houses for BPL families are being constructed under the Indira Awas Yojana.
• Under National Rural Employment Guarantee Scheme, the Gram Panchayats have succeeded in enhancing livelihood security to the people in rural areas. Kusla Gram Panchayat of District Mansa has been adjudged as one of the eleven best in the country for work done under NREGS. The daily wage rates have now been increased from Rs.184 to Rs. 200 in the state. The stress is on creation of meaningful and productive assets under the scheme.
• A master plan for cleaning of 17,255 village ponds in 12,282 panchayats has been framed. There is total 24,405 acre pond area in Punjab and the average cost per acre for remodeling is Rs.5 lac. And the project is expected to be completed in approximately 3 years.
• The Annual Plan for Rural Development for the year 2017-18 focuses on creation of rural employment and rural livelihood, construction of rural toilets, improvement / remodeling and rejuvenation of village ponds and disposal of sullage water.
• A plan outlay of Rs. 1710 crore (including Rs. 600 crore for Mukh Mantri Pendu Vikas Yojana) has been earmarked for rural development.

Punjab Urban Development :

• Punjab is in the midst of urban transition. At the dawn of the twentieth century, only 12.46 per cent of the total population of the then pre-partition united Punjab was urban. At the beginning of the twenty-first century, the urban population of Punjab has increased to 33.95 per cent, against 27.78 per cent for the country as a whole. Punjab is now the fifth major urbanized state of India after Tamil Nadu (43.86%), Maharashtra (42.40%), Gujarat (37.35%) and Karnataka (33.98%).

State Government Initiatives for Urban Development :

• The Punjab Government is implementing a major and ambitious scheme of 'Punjab Urban Development Mission' of Rs. 7586 Crore entitled 'to provide 100% coverage for water supply, sewerage, sewerage plants, roads and streetlights in all the cities of the state by the year 2018’.
• Punjab Water Supply and Sewerage Board has been restructured comprehensively with the aim to put it on professional pedestal and for bringing qualitative changes in the delivery system.
• Under Jawaharlal Nehru National Urban Renewal Mission (JNNURM), the major new projects are being implemented. These are :

                Bus Rapid Transit System (BRTS), Amritsar
                Sewerage network and Sewerage Treatment Plant south-east zone, Amritsar and
                Integrated Solid Waste Management, Ludhiana.

• New Chandigarh : The state is developing 'New Chandigarh' on an area of approximately 15,000 acres on the concept of smart city. As New Chandigarh is located in close proximity to Chandigarh. It is being planned to ensure that it finds a place among the best planned cities in the world. The city, in the foot hills of Shiwaliks, will be a green / eco city with approximately 30% of the area as green area. The city will be a self contained city and will not be a satellite town of Chandigarh and will act as a counter magnet to Chandigarh. The city will have a unique and world class medical and educational infrastructure.
• Medicity : Medicity on an area of approximately 250 acre land is being developed near Mullanpur in Mohali by state government with an approximate project cost of Rs.700 crore. This Medicity will comprise of world class multi-specialty hospitals along with medical colleges and medical research institutes. 50 acres of land has already been allotted to Homi Bhabha Cancer Hospital and Research Centre, which is under the Department of Atomic Energy, Govt. of India. 10 acres of land has been allotted to the Max Healthcare Institute, Chaitanya Hospital, Jindal IVF Nursing Home and Grewal Eye Institute. Rest of the land will soon be made available to medical hospitals and institutes of repute.
• Edu City : To develop the human resource in the state, an education city is being planned on an area of approximately 1600 acre with a cost of Rs. 4,000 crore. This education city will have educational facilities of international standards from school age to research level including branch campuses of leading international universities. An amount of Rs. 300 crore is proposed to spend in 2018-19.
• IT City : To generate employment in the state, an IT city on an area of approximately 1700 acre in close proximity to International Airport at SAS Nagar is being developed by GMADA. Land has already been allocated to 20 leading IT companies and 23 more applications, received from the IT companies for allotment of land, are under process. The IT city will generate more than 50,000 jobs in the coming years.
• Amritsar will also be developed as IT and Knowledge Hub.
• Software Technology Parks of India is establishing STPI facilities and State-of the Art incubation facility at Amritsar.
• City Bus Service has been started in Ludhiana, Jalandhar and Amritsar.
• 'Affordable Houses for All' : The Punjab Government is taking initiative to provide houses to the economically weaker section (EWS) in the state. 50,000 Houses for EWS are being constructed in next two years in collaboration with HUDCO and will be allotted Cities beneficiaries under the scheme on EMI payable in 20 years.
• The State Government will also work actively to derive maximum advantage under the newly announced schemes of the Union Budget 2017-18. Mission for Development of 100 Smart Cities, Urban Rejuvenation Mission - 500 Habitations and Sardar Patel Urban Housing Scheme.
• The outlay in the Annual Plan for Urban Development is Rs. 3126 Crore.

Greening Punjab :

• Green Punjab Mission was launched by the Hon'ble Chief Minister in 2015-16. The aim is to improve the stocking and productivity of existing forest areas by planting trees on institutional lands and along the drains, canals and roads.
• During 2016-17, a sum of Rs 25 crore has been kept for the maintenance of old plantation and other important projects like MALWA plantation project and other activities.
• The Mission would be strengthened in the coming years with contribution from the public, industry, boards and corporations of the State Government.
• Recently the Parliament cleared the Motor Vehicles (Amendment) Bill, recognizing battery-powered E-rickshaws as a valid form of commercial transport. The State Government has decided to introduce E Rickshaws in the old Corporation towns in the first phase with the twin objectives of providing employment opportunities to the poor and curb air pollution in the cities.
• The Government will soon launch a scheme to offer attractive loans to people to e-rickshaws.

State Government Initiatives for Water Supply and Sanitation :

• Presently, 98% of rural population has been covered with supplies of potable drinking water.
• The Punjab Government has notified 'Punjab State Rural Water and Sanitation Policy 2017'. The main aim of the policy is to provide :

          a).100% coverage of all households in rural areas of Punjab with at least 70 ipcd of potable water, supplied through 24 x 7 piped and metered individual water supply connections.
         b).To ensure that 100% rural households have access to and use safe sanitation facilities that do not contaminate the environment, particularly ground water.

• The World Bank has approved the ‘2nd Punjab Rural Water Supply and Sanitation Project’ -to improve rural water supply and sanitation services and service delivery arrangements in the state, spread over six years (2015 - 2021) with a total cost of Rs. 2200 crore.
• To provide safe drinking water to the citizens, the Punjab Government has set up 1824 R.O systems in rural areas of the state and another 561 R.O systems are being set up during 2017-18.

Announcements made in Budget of Punjab 2017-18 :

The important allocations for Water Supply and Sanitation in Annual Plan 2017-18 are :

Rs. 150 Crore - for 2nd Punjab Rural Water Supply and Sanitation Sector Improvement Programme - Word Bank Assisted Project.
Rs. 100 Crore - for installation of R.0 systems.
Rs. 25 Crore - for National Rural Drinking Water Programme (NRDWP).
Rs. 80 Crore - for Swachh Bharat Abhiyan.