The move was aimed at meeting the Centre's directives and fulfilling JNNRUM conditions for ensuring funding under centrally sponsored programmes.
The decision would ensure planned growth in peripheral areas of existing towns and help in keeping check on unauthorised constructions, a government spokesman said.
The cabinet also decided to frame a special policy for regularisation of encroachments by the oustees of New Bilaspur Township, subject to the condition that the maximum extent of land which may be regularised would not exceed 150 sq mts and same shall be on freehold basis, he said.
In pursuance of the government's decision to teach Urdu and Punjabi languages in 100 schools, the cabinet approved creation of 100 posts each for Urdu and Punjabi on contract basis, he said.
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The cabinet further decided to move the case for clearance of land under Forest Conservation Act to the Union Ministry of Environment and Forests for setting up a central university in the state.
The cabinet also approved the proposal of Himachal High Court for enhancement of pecuniary jurisdictions of all subordinate courts in the state by amending HP Courts Act, 1976 to enable citizens to take up their cases at the district level courts, the spokesman said.