Punjab CLU Charges Calculator (2026)

Free tool · Rates as notified 04.06.2025. This Punjab CLU charges calculator estimates what a change of land use actually costs a developer — External Development Charges, CLU charges, Licence/Permission Fee, the 5% Social Infrastructure Fund levy and the processing fee — using the Government of Punjab notification rates. Pick your zone, land use and area. For the process itself, read our guide to change of land use in Punjab.

What this Punjab CLU charges calculator includes

Getting a change of land use approved is not one fee. It is five, and the processing fee everyone quotes is by far the smallest of them. On a two-acre residential plotted project in the Mohali master-plan area, the processing fee is under ₹10,000 while EDC alone runs into crores. Quoting the processing fee as “the CLU cost” is the single most common budgeting mistake in Punjab land development.

• External Development Charges (EDC) — the largest line by a wide margin. Charged per acre, and it varies enormously by zone: residential group housing is ₹308.25 lakh per acre in the SAS Nagar master-plan area against ₹21.92 lakh in the rest of Punjab.
• CLU charges — the conversion charge proper. Depends on your road frontage: National Highway attracts the highest rate, then State Highway or Scheduled Road, then any other road.
• Licence Fee / Permission Fee (LF/PF) — per acre, by zone and land use.
• Social Infrastructure Fund (SIF) — 5% of the combined EDC, CLU and LF/PF total.
• Processing fee — ₹7,500 for the first acre and ₹1,500 for each subsequent acre.

Building plan scrutiny (₹45 per sq m of covered area for residential, ₹90 for other categories), layout plan scrutiny at ₹7.5 per sq m, and access charges for scheduled roads sit outside this calculator because they depend on your drawings rather than your land.

The 10% annual escalation almost nobody prices in

This is the clause that quietly breaks feasibility models. The notification states that CLU charges, EDC and Licence Fee increase by 10% compounded on 1 April every year, starting 1 April 2026. Not a review. Not subject to a fresh order. Automatic.

Compounded, that is roughly a 61% increase over five years and a doubling in a little over seven. A project costed on the June 2025 base rates and submitted three years later is working from a number that is around a third too low. The calculator above applies the escalations that have already occurred automatically, so the figure you see is current rather than the base rate.

The practical consequence: if your approval timeline crosses an April, budget the higher figure. Charges are assessed on the rates applicable when your application is processed, not when you first drew the layout.

Zone rules that change your number

• Overlapping zones: the higher rate wins. A site that could fall in two classifications is charged at the more expensive one.
• A site spanning two zones is charged proportionately — each portion at its own zone rate.
• Highway strips borrow another zone. Land within 2 km either side of NH-1 outside any potential zone takes Zone 4 rates; other National Highways, State Highways and Scheduled Roads within 1 km take Zone 5 rates.
• Frontage is a pricing decision. In the SAS Nagar master-plan area, commercial CLU is ₹106.29 lakh per acre on a National Highway against ₹79.72 lakh on an other road — a difference of ₹26.57 lakh for every acre.
• Changing use later costs more, never less. If you have already paid and then change the project’s nature, you pay the difference where the new charges are higher. Where they are lower, nothing is refunded.

Which rates apply to your application

The rates here are from the Department of Housing and Urban Development notification dated 4 June 2025, issued with Council of Ministers approval and applicable across Punjab including municipal areas. A follow-up notification of 16 July 2025 settled the cut-off: applications submitted before 4 June 2025 are charged under the previous policy; anything submitted on or after that date is charged at these rates.

That distinction mattered in practice. In November 2025 the Directorate of Local Government wrote to all Municipal Commissioners because authorities were still levying the old 2017 rates, and ordered demand notices to be issued in every case where the wrong charges had been applied. If your project was approved in that window on old rates, a revised demand is possible.

When are CLU, EDC and licence fee paid?

Development charges are not all due on one day. Under the Department of Housing and Urban Development notification No. 12023/53/2025-5HG2/1132 dated 2 July 2026 (Punjab Government Gazette Extraordinary, 3 July 2026), which amends the notification of 5 December 2025, the promoter pays in two stages:

• 25% upfront — of the total External Development Charges, Licence Fee, SIF, PR Cess etc., deposited with the competent authority within 30 days of the demand notice or Letter of Intent.
• Balance 75% as a lump sum before the licence is issued — paying the balance EDC this way earns a 5% rebate on that 75% of EDC, as per notification No. 17/17/2001-5Hg2/P-F/1815 dated 22 June 2010.
• Or the balance 75% in 6 equal half-yearly instalments with 12% simple interest a year, backed by an undertaking and a bank guarantee or hypothecation/mortgage of the property.
• Missed instalments can still be deposited, but with penal interest 3% higher than the normal rate in the notification.

Source: copy of the Gazette notification (PDF). All other terms of the 5 December 2025 notification still apply. This is a summary of the notification, not legal advice — the competent authority’s demand notice for your project is what binds.

FAQ

Is this the same as the CLU fee for converting a single residential plot?
No. These are project-scale rates for real estate development. A small individual conversion is handled by the competent authority for your area and will be far smaller. This calculator is aimed at developers and colonisers.

Why is EDC zero-rated on some land uses?
It is not zero, but CLU charges specifically are nil for hospitals, hotels, institutions and industry or warehousing across every zone. EDC and Licence Fee still apply. The state is deliberately not taxing conversion for those uses.

Can I rely on this figure for a bank or investor model?
Treat it as a planning estimate. The competent authority — GMADA, PUDA, GLADA, the relevant ULB or your regional development authority — issues the binding itemised demand for your parcel. Always get that in writing before you commit.

Does the 5% SIF apply to the processing fee too?
No. SIF is calculated at 5% of the total of EDC, CLU and Permission/Licence Fee only.

Is CLU, EDC and licence fee paid upfront or in instalments in Punjab?
Under the 2 July 2026 notification, 25% of EDC, Licence Fee, SIF and PR Cess is paid within 30 days of the demand notice or Letter of Intent. The balance 75% is paid either as a lump sum before the licence (with a 5% rebate on the balance EDC) or in 6 equal half-yearly instalments at 12% simple interest, backed by a bank guarantee or mortgage. CLU charges are not part of that instalment clause and are generally paid in full at approval — confirm with your district town planner.