LAHORE, Jan 12: The Punjab government on Monday approved reconstruction of water reservoirs and canals, and rehabilitation of the Lower Chenab Canal System at a cost of Rs2.4 billion.

The approval was given at a meeting of the provincial cabinet presided over by Chief Minister Pervaiz Elahi. Addressing the cabinet, the chief minister underscored the need and importance of the rehabilitation of the provincial irrigation system for the provincial and national economy and farmers.

He was of the view that the benefits of an improved irrigation system in the Punjab would also be felt in other provinces. He said the southern Punjab had witnessed improvement in water supply due to the steps taken by the government.

He also instructed the administration to "speed up work on the controversial Greater Thal Canal for completing the scheme in one year instead of two years." He said the administration needed to make coordinated planning for the rehabilitation of the barrages and review the possibility of use of water reservoirs for generating low cost electricity.

The cabinet also took decisions on the provision of housing to the government employees on their retirement, the shifting of the industrial units from the residential areas, and the formulation of new transport policy.

It also approved a draft law for establishment of a regulatory authority in order to provide houses to the government employees. The government has identified 12 sites all over the province for executing the project. The allottees would not be allowed to sell their houses before one year.

Mr Elahi said the draft was being moved in the assembly in order to ensure the continuity of the project. He directed the authorities to ensure timely payment to private land owners from whom land had been acquired for establishing colonies for the government employees.

The cabinet also decided to legislate to prevent overloading as well as to revoke route permits of rundown and shabby buses. The chief minister expressed his profound grief over the loss of lives in a bus accident at Bhakkar and announced an assistance of Rs50,000 each for the families of those who had died. He also instructed the administration to be vigilant while issuing fitness certificates to buses and trucks.