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Punjab Govt's Urbanisation Push Faces Rural Resistance
Business Standard
|August 04, 2025
Bhagwant Mann-led AAP govt's land pooling policy draws backlash over lack of consultation, low returns, high charges, and mistrust. Sanjeeb Mukherjee reports
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Punjab farmers are back on the streets. This time not against the Centre, but in protest against a controversial land pooling policy of the Bhagwant Mann-led Aam Aadmi Party (AAP) government notified in June.
The policy aims to kick-start a new wave of urbanisation in the predominantly rural state. Some experts say it was announced by using certain provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and Resettlement Act of 2013, popularly known as LARR-2013.
According to them, the government's argument is that LARR, with its mandatory requirements such as social and environmental impact assessments and 70 per cent Gram Sabha consent, unduly delays the land acquisition process for urbanisation. Hence, a new approach was needed to expedite it.
The land pooling policy is applicable to around 164 villages across Punjab, covering around 65,000 acres. Of this, around 48,000 acres (roughly 74 per cent) is proposed to be acquired in and around the industrial city of Ludhiana.
In fact, land will be acquired around 27 major cities to set up urban clusters.
While the policy states that the submission of land by farmers for pooling is "purely voluntary," critics argue that invoking Section 11 of the LARR implies that farmers lose the right to alter land use once it is pooled.
Policy details
According to experts, if a farmer contributes one acre of agricultural land for pooling in residential areas, he will receive 1,000 square yards of developed residential plots and 200 square yards of commercial plots (including parking) in return.
Similarly, there are different matrices for land to be returned if it is pooled for industrial, institutional, commercial, or mixed-use sectors.
This story is from the August 04, 2025 edition of Business Standard.
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