Panchkula has experienced rapid growth in its population and area since its establishment. Initially developed as a satellite city to Chandigarh, the city is now experiencing urban sprawl in its Northern and Eastern regions. The low cost of land, coupled with infrastructural and industrial development in the city, has attracted a large number of migrants from Chandigarh and the neighboring rural areas of the Panchkula district.

    Consequently, the growth of Panchkula beyond its city limits has led to numerous infrastructural, socio-economic, environmental, and governance challenges for the local city administration. It has called for the creation of a separate Authority that would work towards ensuring continued, sustained, and balanced growth for the newly emerging Metropolitan Area, in coordination with the Local Administration and the State Government

    The Panchkula Metropolitan Development Authority (PMDA) has been established by the Haryana Act No. 23 of 2021, notification dated 09.09.2021, to develop a vision for continued, sustained, and balanced growth of the Panchkula Metropolitan Area, spread across 388.06 sq. km, and having Panchkula, Pinjore, Kalka, and Barwala areas of the district Panchkula. There are 194 villages and 5.23 population (2021) under PMDA, which are likely to be increased to 6.37 lacs in 2031. The establishment of the PMDA has made Panchkula the third city in the State of Haryana, after Faridabad and Gurugram, to have such an institution.

    The PMDA will ensure the development of infrastructure, provision of urban amenities, social, economic, and industrial development of the area, better traffic management, transport infrastructure, and sustainable management of the urban environment. It will help in the generation of employment opportunities, which will lead to a better standard of living for people in the area. The PMDA will work in coordination with other authorities such as the Haryana Shehri Vikas Pradhikaran, HSIIDC, and Municipal Corporation.