A decision to this effect was taken by the Council of Ministers at a meeting held here under the Chairmanship of Chief Minister Parkash Singh Badal, an official spokesman said.
The policy was primarily designed to ensure that outdoor advertisement was not hazardous to traffic.
The spaces meant for outdoor advertisement would be auctioned in a transparent manner to stop illegal practices in the trade.
The cabinet also approved an ordinance for amending the Punjab Municipal Act, 1911 to ensure implementation of the new Punjab Municipal Outdoor Advertisement Policy, 2012 and Municipal Outdoor Advertisement bye-laws, 2012.
In a bid to ensure effective functioning and streamlining of the state administration, the cabinet also gave its nod for creating 68 posts in the Directorate of Governance Reforms (DGR).
The DGR was instrumental in improving the office procedures and systems besides carrying out administrative reforms and e-governance in all departments of the state government, the spokesman said.
The Cabinet approved contribution of an amount of Rs 10 lakh and Rs 7.50 lakh from discretionary funds of ministers and Chief Parliamentary Secretaries every year for the construction of