Under the leadership of Chief Minister Bhagwant Mann, the Punjab Cabinet on Tuesday approved several farmer-friendly amendments to the Land Pooling Policy-2025, making it more transparent, inclusive, and beneficial for landowners who voluntarily participate in urban development projects.
₹1 Lakh Annually Till Land is Developed
The highlight of the revised policy is the financial assistance of ₹1 lakh per year that the government will provide to farmers participating in land pooling — until the land is fully developed. This amount is a five-fold increase from the ₹20,000 offered during previous governments.
Additionally, this annual amount will increase by 10% every year, providing a measure of inflation protection and income stability for farmers.
Intent Letter in 21 Days, Cultivation and Income to Continue
To expedite the process, the government will now issue a Letter of Intent (LOI) to farmers within 21 days of their enrollment in the scheme. The LOI will be transferable and can be used as collateral to secure loans from banks.
Farmers will also be allowed to continue cultivation on their land until the development work begins, and during this period, they will be provided with an additional ₹50,000 per year as sustenance support. Furthermore, there will be no restrictions on buying or selling the land during the pooling process.
A Voluntary and Transparent Approach
Chief Minister Bhagwant Mann clarified that no coercion will be used in this scheme — no land acquisition will be forced. “This is the first-of-its-kind scheme where farmers are free to decide whether they wish to participate and contribute their land for Punjab’s development,” Mann said.
The amendments are based on extensive feedback from sarpanches, union representatives, and farmers, collected over a series of meetings held across various villages. The goal is to make the land pooling and urban development mechanism efficient, impactful, and farmer-centric.
Attractive Return: Residential and Commercial Land in Exchange
According to the new policy:
- For every kanal of pooled land, the landowner will receive 125 square yards of residential plot and 25 square yards of commercial land.
- If the landowner opts out of commercial land, they will be offered three times the area in residential land instead.
- For example, if a farmer donates one acre, they can receive 1600 square yards of residential plot in an Urban Estate, if they waive the commercial portion.
The LOI issuance will also entitle landowners to a one-time sustenance grant of ₹50,000. Once physical possession of the land is taken for development, the annual compensation of ₹1 lakh (with a 10% annual increment) will begin and continue until developed plots are handed back.
Development Charges and No Hidden Costs
The Cabinet also decided that for land pooling involving 50 acres or more, no charges other than External Development Charges (EDC) will be levied. This measure aims to make participation in large-scale pooling projects more viable and attractive for stakeholders.
Policy Aims at Smoother Urban Expansion
The Punjab Urban Planning and Development Authority (PUDA) will implement the revised policy. The move is part of the government’s broader plan to streamline land acquisition and curb the exploitation by private developers, who in the past created unauthorized colonies lacking proper sewage, roads, and infrastructure.
The revised Land Pooling Policy 2025 is expected to encourage voluntary participation of landowners, promote planned urbanization, and ensure that development benefits are shared fairly with farmers, making them true partners in the state’s growth story.