Punjab Reforms Land Pooling Policy, Promises Landowners No Losses with Enhanced Benefits

 

Punjab Reforms Land Pooling Policy, Promises Landowners No Losses with Enhanced Benefits

Responding to concerns about potential displacement of locals, CM Mann assured that the process would be carried out in a staggered manner in land pockets, rather than “at one go”.

RMN News Punjab Desk
July 23, 2025

Chandigarh: The Punjab cabinet has approved significant amendments to its ‘Land Pooling Policy-2025‘, aiming to ensure that landowners involved in the scheme will not incur losses and are, in fact, treated as stakeholders in the government’s development initiatives. Chief Minister Bhagwant Mann has termed the revamped scheme “historic,” emphasizing its fair treatment of farmers.

Enhanced Financial Benefits and Stakeholder Status for Landowners

Under the revised policy, landowners will see a substantial increase in annual compensation and livelihood support. Annual compensation for landowners has been increased from Rs 30,000 to Rs 50,000 per acre, payable upon the issuance of a letter of intent. This letter, which outlines the offer of a 1,000 sq yard residential plot and a 200 sq yard commercial plot per acre of land, will be issued within 21 days.

Once the government takes possession of the land, this compensation will further increase to Rs 1 lakh per acre annually, with a 10% annual hike. Crucially, the amendments introduce an annual livelihood allowance of Rs 1 lakh until the land is developed, representing a fivefold increase compared to the Rs 20,000 previously provided by past governments.

The scheme now extends residential and commercial plot allotments to farmers with smaller landholdings, specifically those owning between 1 and 7 kanals. For instance, a farmer with one kanal (605 sq yards) will receive a 25 sq yards commercial booth and a 125 sq yards residential plot in the same area.

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Flexibility and Farmer-Centric Options

The revised policy offers landowners significant flexibility:

• Larger Residential Plots: Landowners can opt to receive a larger residential plot if they are not interested in a commercial plot. For example, if a farmer foregoes a 200 sq yard commercial plot, it will be converted into a 600 sq yard residential area, effectively tripling their residential plot size.
• Loan Access: Farmers can now secure loans using the letter of intent, providing financial leverage even before development.
• Continued Cultivation: Landowners retain the option to continue cultivating their land even after agreeing to participate, with access roads provided.
• No External Development Charges (EDC): For land pooling involving 50 acres or more, no charges other than external development charges will be levied.
• Free Zonal Road Construction: If a landowner offers, for example, 50 acres, 30 acres will be developed and returned to them, with the government constructing zonal roads within these 30 acres free of cost.

Dispelling Misinformation and Ensuring Voluntary Participation

CM Mann addressed concerns and misinformation spread by opposition parties, stating that claims of land registration halting in notified areas are “absolutely baseless”. He clarified that unlike land acquisition, there are no restrictions on registration, obtaining loans, or continuing farming for landowners who do not wish to hand over their land. These landowners are also given the flexibility to join the scheme at a later stage if they choose to. Mann assured that the government does not intend to force farmers to participate, highlighting that existing colonies often have farmlands located next to residential plots.

Addressing Displacement and Future Development Vision

Responding to concerns about potential displacement of locals, CM Mann assured that the process would be carried out in a staggered manner in land pockets, rather than “at one go”. He cited examples like the inclusion of only four villages in Patiala and two in Sangrur in the policy, emphasizing that villages will not be uprooted.

Mann justified the development of large land parcels by comparing Punjab’s developed colony area (25,000 acres) to Haryana’s (48,000 acres), stating that while the objective is not to reduce farmland, it is to achieve a better quality of life as agricultural production increases. He also highlighted the lack of unauthorized colonies in Haryana compared to Punjab, implying a more organized development approach.

Key Changes to the Land Pooling Policy:

• Extended Allotment: Residential and commercial plot allotment now includes smaller farmers with 1-7 kanals.
• Residential Plot Option: Landowners can opt for larger residential plots instead of commercial ones.
• Increased Compensation (Initial): Annual compensation increased from Rs 30,000 to Rs 50,000 per acre.
• Increased Compensation (Post-Possession): Compensation rises to Rs 1 lakh per acre annually once land possession is taken, with a 10% annual hike.
• Livelihood Allowance: A fivefold increase in annual livelihood allowance to Rs 1 lakh until land is developed.
• Letter of Intent: Issued within 21 days.
• Small Holdings Benefit: For 1 kanal ownership, a 25 sq yards commercial booth and 125 sq yards residential plot are allotted.
• Loan Eligibility: Farmers can secure loans using the letter of intent.
• Continued Farming: Landowners can continue cultivating their land.
• No Halt on Registration: Land registration will not halt for non-participating landowners; they can still register, get loans, or farm, and can join later.
• Free Zonal Roads: The government will construct zonal roads within the returned land free of cost.
• No Extra Charges: Only external development charges will be levied for land pooling of 50 acres or more.

Land Pooling Scheme:

Think of this land pooling scheme as building a new, improved neighborhood. Instead of buying individual houses and then trying to rezone them, the government is inviting homeowners (landowners) to temporarily contribute their plots to a shared pool. In return, the homeowners get a bigger, more valuable, and well-planned piece of the new neighborhood, along with financial support during the construction, effectively making them co-developers rather than just sellers.

Note: RMN News cannot independently confirm the veracity of Punjab Government claims regarding the Land Pooling Policy.