In a fresh setback to Punjab’s Farm Stay Policy, 2026, the state government is set to exclude areas covered by approved master plans and land falling within 10 km of municipal limits, potentially restricting the policy’s reach across large parts of the state.
The proposed curbs follow an earlier amendment, prompted by the intervention of the National Green Tribunal (NGT), which excluded land protected under the Punjab Land Preservation Act (PLPA), 1900, as well as land released or de-listed from its purview.
The latest proposal, discussed at a meeting between the housing and urban development department and the tourism department in the first week of October, has been forwarded to the chief minister’s office for final approval, officials said.
The housing and urban development department has raised concerns that allowing farm stays in master-planned areas could undermine planned development and enable the commercial construction and sale of farmhouses under the guise of rural tourism.
“At the meeting, it was decided to keep areas covered by approved master plans and the 10-km belt around municipal limits outside the policy’s ambit. Our primary objective is to promote tourism in rural areas. Allowing farm stays in master-planned areas could defeat the purpose of planned development, as two different policy frameworks cannot operate simultaneously in the same area,” a senior tourism department official said.
The official added that the policy could be misused to construct farmhouses for subsequent sale as real estate properties rather than to promote genuine rural tourism.
{{/usCountry}}The official added that the policy could be misused to construct farmhouses for subsequent sale as real estate properties rather than to promote genuine rural tourism.
{{/usCountry}}Introduced in May, the policy aims at promoting rural tourism, diversifying farmers’ income and offering visitors immersive rural experiences. However, it has received 35 applications so far, of which 21 have been approved, 12 are pending and two have been rejected, according to departmental figures.
Punjab has approved master plans for numerous Local Planning Areas under regional development authorities, including the Greater Mohali Area Development Authority, Greater Ludhiana Area Development Authority, Bathinda Development Authority, Jalandhar Development Authority, Amritsar Development Authority and Patiala Development Authority.
The proposed 10-km exclusion could further narrow the policy’s reach. Punjab has 105 urban local bodies, comprising eight municipal corporations, 76 municipal councils and 21 nagar panchayats. If approved, the restrictions could leave prospective applicants with fewer locations to establish farm stays.
The latest move comes less than a month after the government amended the policy following NGT proceedings. In an affidavit filed on September 16, the state told the tribunal that it had made changes in compliance with its July 24 order. The government also revised electricity provisions, specifying domestic tariff rates subject to notification by the competent authorities, and deleted notes under Clauses 3.2(2) and 8.2.1. The remaining provisions of the policy, notified on May 6, continue to remain in force.
The proposed curbs have also raised concerns among prospective applicants. Raman Khanna, a Mohali resident whose application was rejected because the proposed site fell within a master-planned area, said further exclusions could make the policy less attractive.
“If master-planned areas and land within 10 km of municipal limits are excluded, very little scope will remain for implementation. Not many people may be interested in setting up farm stays in remote rural areas,” he said.
The development comes amid NGT scrutiny of another state policy, the Low Impact Green Housing (LIGH) Policy, 2025, notified in November last year. The policy has faced proceedings over environmental and forest-conservation concerns and has been stayed by the tribunal.