Punjab Budget 2025: ₹5,983 Crore for Urban Development, Modern Infrastructure & Sustainability

Punjab Minister Hardip Singh Mundia

Punjab Budget 2025: ₹5,983 Crore for Urban Development, Modern Infrastructure & Sustainability

Punjab Budget 2025: Rs.5,983 Crore to Revolutionize Urban Development Across Major Cities

Chandigarh, March 26, 2025 — The Punjab government has announced a major Rs.5,983 crore allocation for urban development in the 2025-26 budget, focusing on the transformation of the state’s cities, particularly Ludhiana, Amritsar, Jalandhar, and SAS Nagar. As urbanization continues to accelerate, this strategic financial investment is set to improve the quality of life for residents, providing world-class facilities, state-of-the-art infrastructure, and a sustainable urban environment.

Key Focus Areas of the Punjab Urban Development Budget

The newly presented budget by Finance Minister Harpal Singh Cheema includes several transformative projects aimed at enhancing urban living across Punjab. Punjab Housing and Urban Development Minister Hardip Singh Mundian expressed immense gratitude to the Chief Minister and Finance Minister for focusing on the urban population, which makes up nearly 40% of the state’s residents. Here are the key highlights from the budget:

  1. Development of World-Class Roads Across Key Cities

The Punjab government has earmarked Rs. 225 crore from the Punjab Municipal Development Fund to upgrade road infrastructure across the state. Over the next year, approximately 50 kilometers of world-class roads will be constructed in major cities, including Ludhiana, Jalandhar, Amritsar, and SAS Nagar. These roads will not only improve connectivity but also enhance the overall urban aesthetic, making these cities more modern and accessible for both residents and visitors.

  1. Enhanced Municipal Services for All Towns and Cities

A crucial part of the budget is the focus on ensuring the uniform delivery of essential services across 166 towns and cities in Punjab. The allocation of Rs. 225 crore will guarantee improvements in five key areas of urban infrastructure: cleanliness, water supply, sewage, roads, and street lighting. This initiative is expected to elevate the living standards of millions of urban dwellers, ensuring that basic services are reliably available to everyone, regardless of their city or town’s size.

  1. Introduction of 367 E-Buses for Sustainable Urban Mobility

As part of the Punjab government’s commitment to sustainable development, 367 e-buses will be procured for Ludhiana. This move aims to revolutionize urban mobility in the city, providing residents with an eco-friendly and affordable transportation option. The e-buses will also help reduce pollution, improve air quality, and make commuting more efficient for the growing population in urban centers.

Along with the introduction of e-buses, a new Civil Bus Depot will be developed in Ludhiana. This depot will serve as a hub for maintaining and deploying the e-buses, ensuring that the city’s public transportation system is both effective and sustainable.

  1. Improving Urban Governance and Water Services in Ludhiana

The Punjab Municipal Services Improvement Project (PMSIP), with an allocation of Rs. 300 crore, will focus on enhancing urban governance in Ludhiana, a major commercial hub in the state. This initiative will improve financial management within municipal departments, streamline the delivery of services, and ensure that sustainable water services are accessible to the city’s residents. This will contribute to better resource management and a more efficient public service delivery system.

Additionally, the government has committed to expanding water services across urban areas to meet the increasing demand for clean drinking water, a critical factor for health and well-being in densely populated cities.

  1. Support for MSMEs and Industrial Growth

The budget also places emphasis on small businesses and micro, small, and medium enterprises (MSMEs), which are the backbone of Punjab’s economy. A Rs. 120 crore allocation has been set aside for projects aimed at improving market access, financial assistance, and technology adoption for MSMEs. This includes establishing a Technology Extension Centre in key industrial hubs, boosting innovation and competitiveness within Punjab’s manufacturing sectors.

In Ludhiana, ₹10 crore will be used for the upgrade of the Raising and Accelerating MSME Performance (RAMP) Centre and the Institute of Auto Parts and Hand Tools Technology (IAHT), which will enhance the skills of the local workforce and improve the region’s industrial productivity.

Expected Benefits of the Urban Development Budget

The key objective of the Punjab government’s budget is to foster inclusive and sustainable growth across urban areas. With nearly 40% of Punjab’s population living in cities, the development of urban infrastructure will directly benefit millions of people. Here’s how the budget will make a difference:

  • Improved Infrastructure: The development of modern roads, enhanced municipal services, and upgraded transportation networks will elevate the state’s urban infrastructure to international standards.
  • Eco-Friendly Urban Mobility: The introduction of e-buses will not only reduce carbon emissions but also provide an affordable and efficient transportation system for urban residents.
  • Better Living Standards: The uniform provision of clean water, sewage systems, and street lighting will contribute to better hygiene, health, and overall living conditions in Punjab’s cities.
  • Economic Growth: With significant investments in MSMEs, industrial growth is expected to boost the state’s economy, creating jobs and enhancing market access for local businesses.

Conclusion: A Vision for a Modern, Sustainable Punjab

Punjab’s 2025 budget is a clear indication of the state government’s commitment to modernizing urban areas and providing residents with world-class amenities. The ₹5,983 crore allocation for urban development is a significant step toward achieving sustainable, eco-friendly, and inclusive growth across cities. With improvements in infrastructure, urban mobility, governance, and industrial support, Punjab is poised to become a model for urban development in India.

 

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