Punjab Cabinet Approves ₹1 Lakh Annual Aid for Land Pooling Farmers
Punjab Government Overhauls Land Pooling Policy Under CM Bhagwant Mann
Chandigarh, July 22:
In a landmark move aimed at empowering farmers and streamlining land acquisition, the Punjab Cabinet, led by Chief Minister Bhagwant Mann, has approved major amendments to the Land Pooling Policy 2025. The revised policy significantly increases financial benefits and introduces farmer-centric reforms to ensure inclusive and transparent urban development.
The Cabinet’s decision now guarantees farmers an annual payment of ₹1 lakh per acre as livelihood support until their land is developed—a fivefold increase from the ₹20,000 provided by previous governments. This amount will increase by 10% each year, making it a long-term support system for land contributors.
Letter of Intent in 21 Days; Farming Allowed Until Development
To ensure efficiency and transparency, the Department of Housing and Urban Development will issue a Letter of Intent (LOI) within 21 days of agreement. This LOI can be used to secure loans or sold freely, giving farmers more flexibility and financial freedom.
Farmers can also continue cultivating their land until development begins. During this interim phase, the Punjab Government will provide an additional ₹50,000 annually to support ongoing farming activities. There will be no restrictions on land sale or registration throughout this process.
Developed Land Allotment and Conversion Benefits
Under the amended policy, the Punjab Urban Planning and Development Authority (PUDA) and other special development authorities will offer developed plots in return for pooled land. For each kanal of land contributed, landowners will receive 125 square yards of residential and 25 square yards of commercial land.
Farmers can also convert commercial land into residential land at a 3:1 ratio. For example, surrendering a 200-square-yard commercial plot entitles the contributor to 600 square yards of residential land, thereby increasing their total allotment to 1,600 square yards per acre contributed.
Reduced Charges and Single-Window Support
To further ease the burden on landowners, no charges other than External Development Charges (EDC) will be applied if the pooled land spans 50 acres or more.
These reforms aim to enhance participation from landowners, private developers, and local governing bodies, making the urban development process more collaborative and farmer-friendly.
The Cabinet approved these changes after extensive consultations with village sarpanches, farmer union representatives, and other stakeholders. Feedback from these meetings helped shape a rational and inclusive framework for future development.
CM Bhagwant Mann’s Vision for Inclusive Growth
Chief Minister Bhagwant Mann, while announcing the Cabinet’s decision, emphasized that the revised Land Pooling Policy reflects the government’s commitment to social justice, rural empowerment, and planned urban expansion.
“Unlike previous administrations that offered a meagre ₹20,000, our government has increased support to ₹1 lakh annually, with a 10% hike each year. We want to assure farmers that they are not just contributors, but equal stakeholders in Punjab’s development,” said CM Mann.
He further added that the streamlined LOI process and continued farming rights are aimed at reducing uncertainty and ensuring dignity and stability for participating farmers.