Chandigarh: Punjab government’s recently introduced Land Pooling Policy 2025 has sparked widespread debate, drawing both praise and sharp criticism.
Marketed as a voluntary and progressive alternative to forced land acquisition, the policy aims to support planned urban development across 27 towns, including Ludhiana, Mohali, Amritsar, Patiala, and Bathinda.
Under the policy, landowners who voluntarily pool their land are promised developed plots in return. For every acre contributed, the government offers either 1,000 square yards of residential land and 200 square yards of commercial land, or 1,600 square yards of residential land alone.
The government has assured that all infrastructure—such as roads, sewerage, electricity, and water—will be developed at no cost to the landowner, with external development charges only applicable in cases of pooling over 50 acres.
The Punjab Urban Development Authorities, including GMADA and PDA, have been tasked with implementing the policy. They claim that the model ensures equitable development without resorting to forced acquisition.
Letters of Intent (LOIs) for returned plots are to be issued within 21 days of agreement, and these LOIs are legally tradeable and can be used as collateral for loans.
To support those waiting for development, the government has promised an annual subsistence allowance of ₹50,000.
Additionally, once the land is formally acquired, owners are entitled to an annual compensation of ₹1 lakh per acre until the allotted plots are handed over, with a 10 percent annual increment if the development is delayed.
Despite these assurances, the policy has met with stiff resistance from farmer groups and opposition leaders.
Chief Minister Bhagwant Mann has defended the policy, reiterating that participation is entirely voluntary and that no land will be acquired without consent. He has stated that the scheme is aimed at bringing orderly growth and ending the mushrooming of unauthorized colonies across the state.
The government has set an ambitious target to pool over 40,000 acres of land under this policy, with more than 24,000 acres to be brought under planned development near Ludhiana alone.
While the policy promises a more inclusive model of urbanization, its success will ultimately depend on transparent implementation, fair compensation, and building trust with the farming community.