Sources said the new policy will focus on the construction of low-cost houses in both urban and rural areas. The Housing and Urban Development Department and Punjab Infrastructure Development Board (PIDB) are undertaking a detailed study based on various models adopted by other states in this regard.

The new policy aims to provide maximum benefits to the needy with minimum utilisation of resources and will focus on people living in slums. There will be two different patterns equipped with basic amenities for rural and urban areas throughout the state.

The policy aims to encourage foreign direct investment (FDI) either through local partners or even directly with the stipulation of providing a fixed percentage of housing in EWS (economically-weaker sections) and LIG (lower income group). It will also suggest appropriate and affordable housing finance options as well as construction technologies for EWS and LIG segments.

The government also plans to float schemes so that NRIs could invest in this sector, said sources.

Living-cum-production sites may be promoted by the government on common land available in the villages. As large investments are being made in agri-based industry, the corporates in this sector must include housing for their employees as part of their projects, said sources.

As per industry soothsayers, Haryana and Punjab are expected to get a major share of a projected Rs 1,30,000-crore investment nationwide in real estate by 2010. Consequently, commercial sector development is expected to zoom as a major chunk of this investment will go towards the commercial sector.

Meanwhile, the state government has also got in touch with builders and developers. The state government a couple of months back has issued instructions that “no housing project would get government approval unless the coloniser gives clear proof of acquiring at least 50 per cent of the land mentioned in the project’’.