Punjab Alters Land Use Rules to Encourage Investment


LUDHIANA: The Punjab government has recently overturned a previous policy, officially separating change of land use (CLU) permissions from the final approval of building and layout plans. This decision, enacted by the state’s housing and urban development department, aims to streamline the development process, responding to the needs of investors looking to secure bank loans and clearances earlier in the process.


This change reinstates the former system, which had been integrated in 2023 into a unified application for CLU and layout plan/license to develop colonies. Municipal corporation (MC) officials and the Greater Ludhiana Area Development Authority (GLADA) have been directed to implement this new directive.

Revised Application Structure

The new notification clarifies how developers should apply, distinguishing between standalone projects and housing colonies. CLU permissions for all standalone projects under GLADA and the Department of Local Government (LG) will now be issued separately by their respective authorities. Developers have the option to apply in two ways: first, they can apply separately for CLU and then for the license to develop the colony, or they may submit a combined application for CLU-cum-layout plan/license.


Updated Validity and Extension Policy

To ensure projects transition efficiently from planning to execution, the state has introduced new timelines and conditions for the CLU permission, in accordance with Section 83 of the Punjab Regional and Town Planning and Development (PRTPD) Act, 1995.

CLU permissions will now remain valid for two years from the date of issuance. If not utilized within this period, applicants can request a one-time extension of an additional two years before the initial validity expires, subject to a fee of 20% of the current CLU charges.


The notification makes clear that extensions will not be granted beyond two years following any changes to the Master Plan affecting the site. An MC official confirmed that the notification has been received, and the new rules will be implemented immediately.

  • Published On Oct 12, 2025 at 02:30 PM IST

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