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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 Daily Guardian
|June 03, 2025
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 Emphasised
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.
Punjab Chief Minister Bhagwant Mann chairs Cabinet meeting 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.
Each landowner will receive an entitlement certificate detailing the plots they will get in return. The beneficiaries will also have the option to choose between two 500-square-yard plots or other configurations, based on policy guidelines.
The returned plots, once developed, are expected to structing a group housing society.
A consortium of farmers pooling 50 acres will collectively get 30 acres of developed land in return.
This model of proportionate return based on larger contributions aims to encourage cooperative participation among landowners while facilitating larger development projects.
No Private Players In Initial Handover
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