The North News
Chandigarh, July 22
In a landmark move aimed at reshaping land acquisition in the state, the Punjab Cabinet on Tuesday approved a series of amendments to its Land Pooling Policy-2025, dramatically increasing compensation and flexibility for farmers contributing land to development projects.
The most striking provision is the announcement of a ₹1 lakh annual livelihood allowance for farmers until their land is developed—a fivefold increase from the ₹20,000 granted by previous governments. The allowance will also rise by 10% each year, signalling a long-term commitment to farmer welfare during the transition period.
Chief Minister Bhagwant Mann’s government said the revised policy prioritises fairness, transparency, and farmer agency in the urbanisation process. Notably, farmers will retain the right to cultivate their land and will receive an additional ₹50,000 per year until construction begins.
The amendments also promise administrative streamlining. Letters of Intent (LOIs) will now be issued within 21 days of land pooling agreements and can be used to secure bank loans or sold freely. Importantly, there will be no restrictions on land transactions during the pooling period.
The policy, which was initially framed to bring landowners, developers, and the state into a shared framework for urban expansion, was fine-tuned following consultations with village leaders, union representatives, and farmers across Punjab. Their feedback, the government said, was central to shaping a more inclusive and “development-oriented” approach.
Under the revised terms, farmers surrendering land will receive 125 square yards of residential space and 25 square yards of commercial property per kanal contributed. A ₹50,000 lump sum will also be provided upon the issuance of the LOI.
For larger pooling efforts—those involving over 50 acres—farmers will not be charged anything beyond External Development Charges (EDC). A notable adjustment allows contributors of commercial land to opt instead for residential land at a 3:1 ratio. For example, if a farmer gives up a 200-square-yard commercial plot, they would receive 600 square yards of residential land in exchange, dramatically enhancing the net return.
The move is expected to ease tensions around land acquisition, encourage cooperation from rural landowners, and help meet the state’s growing urban development needs in a manner seen as more participatory and just.
