Punjab Nirman Programme was launched by the Punjab Government in the year 2005-06 and was continued in 2006-07 as well. The main objective of this programme was to make a special and concerted effort to improve the living conditions of the people in urban and rural areas by creating the needed infrastructure works. The main focus was to provide funds to create and complete sanitation and drinking water projects, housing for homeless, street lighting and repair of community centers etc. An amount of Rs. 1,093 crore was sanctioned and given to the Deputy Commissioners to implement this programme. With more than a year having passed since the completion of this programme, the Government approached IDC to assess the impact of this programme and to evaluate it.

The average utilisation performance of rural scheme was 84.90 per cent, which can be rated as barely satisfactory and in the urban areas the schemes/work wise allocation priorities were quite similar to rural area.