Punjab Cabinet Revises Land-Pooling Policy, Boosts Compensation for Farmers

Chandigarh: In a significant move, the Punjab cabinet approved amendments to its Land Pooling Policy-2025 on Tuesday, enhancing benefits for landowners. Chief Minister Bhagwant Mann assured farmers that the revised scheme would safeguard their interests, offering higher compensation and greater flexibility in plot allotments.

Key Revisions to the Policy

• Increased Compensation: Annual compensation for landowners has been raised from ₹30,000 to ₹50,000 per acre upon issuance of a letter of intent. Once the government takes possession, this amount will increase to ₹1 lakh per acre, with a 10% yearly hike.
• Faster Processing: The letter of intent, which guarantees a 1,000 sq yard residential plot and a 200 sq yard commercial plot per acre, will now be issued within 21 days.
• Inclusion of Small Landholders: Farmers with holdings as small as 1-7 kanals will now be eligible for residential and commercial plot allotments.
• Flexible Plot Options: Landowners can opt for larger residential plots if they forego commercial plots. For instance, surrendering a 200 sq yard commercial plot will entitle them to a 600 sq yard residential plot instead.
• Livelihood Allowance: Farmers participating in the scheme will receive an annual allowance of ₹1 lakh until their land is developed—a fivefold increase from the previous ₹20,000.

CM Mann’s Assurance to Farmers

Mann dismissed opposition claims of forced land acquisition, calling them “baseless.” He clarified that landowners could continue farming, avail loans using the letter of intent, or even opt out of the scheme without restrictions on land registration or sale.

“Farmers remain stakeholders in Punjab’s development,” Mann said. “If a landowner joins later, they will still receive developed land in return—not cash. For example, if 50 acres are pooled, 30 acres will be developed and returned with free zonal roads.”

No Displacement, Phased Development

Addressing concerns about displacement, Mann emphasized that land pooling would be implemented in phases, not all at once. Only select villages in Patiala and Sangrur are currently included. “Farmers can keep cultivating their land, and access roads will be provided,” he said.

Why the Policy Was Revised

Mann highlighted that Punjab lags behind Haryana in planned urban development, with only 25,000 acres under colonies compared to Haryana’s 48,000. “We aim to boost infrastructure without reducing farmland,” he said, adding that agricultural productivity remains a priority.

Key Takeaways for Landowners

• Small Landholders Benefit: Even 1 kanal (605 sq yards) entitles owners to a 25 sq yard commercial booth and a 125 sq yard residential plot.
• No Forced Participation: Non-participating landowners can still sell, mortgage, or farm their land.
• Future Participation Allowed: Farmers can join the scheme later and receive developed land in return.

The revised policy aims to balance urban growth with farmer welfare, ensuring landowners are partners in Punjab’s progress.