Punjab Govt Eyes Transparent Urban Expansion With Ludhiana Land Pooling Policy

Ludhiana was developed nearly 30 years ago. As the city has grown congested and unplanned over the years, the Punjab Government has introduced a new Land Pooling Policy, starting with Ludhiana, which may be replicated across the entire state based on its success.

- TARUNI GANDHI

So far, only one city—Mohali—has been developed under a land pooling model, through projects like Aerocity, Aerotropolis, and Eco City under GMADA. The Ludhiana initiative thus marks a significant moment in Punjab's urban transformation journey.

Punjab Finance Minister Advocate Harpal Singh Cheema announced this initiative, calling it the boldest and most pro-farmer land development model. It aims at fair, voluntary participation and a decisive break from past exploitation. "There will be no force, only fairness," said Cheema at a press conference in Punjab Bhawan. "This is a model where landowners partner with the government and receive developed plots in return, ensuring prosperity, dignity, and freedom from builder mafia exploitation."

Voluntary Land Pooling

The newly introduced policy signals a historic shift in how Punjab approaches urban expansion. For decades, land acquisition was associated with conflict, legal challenges, farmer displacement, and opaque dealings with private builders. Now, the Punjab Government is offering landowners a fair, voluntary, and profitable alternative.

Unlike the old land acquisition model under the LARR Act 2013, the new land pooling mechanism avoids coercion and delays. Instead of forcibly acquiring land and compensating landowners in cash, the Punjab Government will now directly invite voluntary land pooling, allowing landowners to contribute their land and get back a portion of it after full infrastructure development. Under this policy, for every 1 acre of land pooled, the landowner receives 1,000 square yards of developed residential plots and 200 square yards of commercial plots, excluding parking and public area deductions. These developed plots are then free to be sold, rented, or retained by the landowners, offering them long-term economic benefits. Cheema emphasized that this policy is not only about land use—it's about wealth creation for rural Punjab.