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Cabinet tweaks land pooling policy amid farmers' opposition
Hindustan Times Amritsar
|July 23, 2025
Amid opposition from farmer bodies and rival political parties to its move to acquire large chunks of land in the state, the Punjab cabinet on Tuesday approved amendments to its land pooling policy, offering better terms to landowners in lieu of pooled land.
Announcing the amendments after a meeting of the state cabinet here, chief minister Bhagwant Mann said farmers who opt for land pooling will now receive an annual livelihood allowance of ₹1 lakh until their land is developed — a five-fold increase from ₹20,000 given by previous governments, and those offering one kanal of land will get an alternative of 125 square yards of residential land and 25 square yards of commercial land per kanal of land in return.
The CM said the government has also assured long-term support by announcing a 10% annual increment in this ₹1 lakh amount. “To ensure faster and more transparent processes, the government will now issue a letter of intent (LOI) to farmers within 21 days. For the convenience of farmers, the LOI can be sold or used to obtain loans. Furthermore, until development work actually begins, farmers can continue cultivating their land and will receive an additional ₹50,000 per year from the government,” he said.
Throughout the process, there will be no restrictions on the sale or purchase of land. Farmers will be free to buy, sell, or register their land at any time.
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