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PUNJAB APPROVES NEW LAND POOLING POLICY: 400% RETURN FOR FARMERS, RS 30,000/ACRE AID, PLOTS WITH FULL AMENITIES IN 27 CITIES

The Business Guardian

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June 03, 2025

Move aimed at curbing illegal colonisation, empowering farmers, and promoting planned development across 27 cities

- TARUNI GANDHI CHANDIGARH

PUNJAB APPROVES NEW LAND POOLING POLICY: 400% RETURN FOR FARMERS, RS 30,000/ACRE AID, PLOTS WITH FULL AMENITIES IN 27 CITIES

In a significant development aimed at streamlining urban expansion and tackling the menace of illegal colonies, the Punjab Cabinet on Monday approved a new Land Pooling Policy.

The policy, described as a voluntary and participatory model, seeks to include landowners as stakeholders in the state's planned growth initiatives while ensuring safeguards against coercion or exploitation.

The policy was approved during a meeting of the Council of Ministers held at Chief Minister Bhagwant Singh Mann's official residence. With this move, the government aims to reverse decades of unregulated construction and unchecked colonization, particularly in urban fringes and peri-urban areas.

VOLUNTARY PARTICIPATION EMPHASIZED

Punjab Renewable Energy Minister Aman Arora clarified that the scheme is completely voluntary. "There is no force, no pressure. The farmer has complete authority. Nothing will happen without their written consent," he stated.

The policy will be launched in 27 selected cities in its first phase, where unauthorized colonies and unregulated development have been most prevalent. Landowners in these areas can now opt to pool their land with the government. They can also continue farming, sell their land, or develop it independently if they so choose.

WHAT FARMERS WILL GET?

Under this land pooling scheme, for every one acre of land pooled with the government, the farmer will receive a 1,000-square-yard residential plot and a 200-square-yard commercial plot.

The government will undertake full infrastructure development on the returned plots, including the construction of roads, water supply, sewerage, street lighting, and public parks.

Until the final plots are ready and handed over, the landowners will receive annual compensation of Rs 30,000 per acre, for a maximum of three years.

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