In a significant policy move aimed at transforming urban development while safeguarding the interests of farmers, the Punjab Government, under the leadership of Chief Minister Bhagwant Mann, has approved major amendments to the Land Pooling Policy 2025. The state cabinet on Tuesday announced a series of progressive changes, including a substantial fivefold increase in the livelihood allowance for farmers, now pegged at ₹1 lakh per annum, compared to the ₹20,000 offered under previous administrations.
The newly amended policy ensures that landowners will receive ₹1 lakh annually from the government until their pooled land is developed. Further strengthening this support, the government has also introduced a 10 percent annual increment on this amount, ensuring that the livelihood of contributing farmers is safeguarded against inflation and delays in development projects. CM Mann emphasized that the reforms are designed to protect both the dignity and the income of land-owning farmers during the transition from rural to urban infrastructure.
Another key feature of the revised Land Pooling Policy is the issuance of a Letter of Intent (LOI) within 21 days of the pooling process. This LOI can be used by farmers to secure loans, or even sold if they choose to liquidate their interest. Importantly, until the actual development work begins, farmers will retain the right to continue cultivating their land and, in addition to the ₹1 lakh annual support, they will receive ₹50,000 per year as a subsistence allowance during this interim period.
The amendments remove several previous restrictions. Farmers will now be free to buy, sell, or register their pooled land at any time, allowing flexibility and economic freedom during the transition. Furthermore, the government has clarified that no charges apart from External Development Charges (EDC) will be levied on pooled land in projects involving 50 acres or more. This aims to reduce the financial burden on participating landowners and encourages voluntary participation in the scheme.
To ensure farmers benefit tangibly, the amended policy provides for 125 square yards of residential land and 25 square yards of commercial land per kanal pooled. This incentivizes contribution by offering a fair exchange, aligning with current market values. Notably, if a landowner opts out of receiving commercial land, they will instead receive three times the residential area in return. For instance, if a farmer contributing one acre foregoes a 200-square-yard commercial plot, they will be allocated 600 additional square yards of residential land—resulting in a total allotment of 1,600 square yards in an urban estate for every acre pooled.
The Punjab Government, through the Department of Housing and Urban Development and the Punjab Urban Planning and Development Authority (PUDA), had earlier initiated a consultative process with farmers, village sarpanches, and stakeholders to collect feedback on the policy. The suggestions were closely studied and have been incorporated into the final amendments, which are being hailed as both progressive and pragmatic.
Chief Minister Bhagwant Mann reiterated the government’s commitment to protecting the interests of farmers while accelerating planned urban development. He noted that these reforms aim to create a win-win situation, where landowners become stakeholders in the development process rather than victims of compulsory acquisition. “Unlike the land acquisition methods of the past, this land pooling model is based on consensus, fairness, and empowerment,” he said.
By providing long-term financial security, legal clarity, and a structured framework for participation, the Land Pooling Policy 2025 is expected to drive inclusive urban growth across Punjab. The reforms mark a shift from adversarial acquisition methods toward cooperative development, positioning Punjab as a model state in participatory urban planning.
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