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Punjab Revises Land Pooling Policy: New Plot Incentives for Farmers with Smaller Holdings

Facing growing opposition to its land pooling scheme, the AAP government in Punjab has introduced significant changes to the policy, offering better incentives to farmers, especially those owning less than one acre. Key Policy Updates Eligibility Extended: Landowners with less than one acre can now qualify for residential and commercial plots by voluntarily joining the

Facing growing opposition to its land pooling scheme, the AAP government in Punjab has introduced significant changes to the policy, offering better incentives to farmers, especially those owning less than one acre.

Key Policy Updates

  • Eligibility Extended: Landowners with less than one acre can now qualify for residential and commercial plots by voluntarily joining the land pooling program.

  • Plot Allotments: For every kanal of land pooled, farmers will receive a 125 sq yd residential plot and a 25 sq yd commercial booth.

  • Scaled Benefits: Larger land contributions bring bigger plots. For instance:

    • 2 kanal: 250 sq yd residential plot + 50 sq yd commercial space.

    • 3 kanal: Two residential plots (250 and 125 sq yd) + 75 sq yd commercial area.

    • Benefits increase proportionally for land contributions up to seven kanal.

  • Enhanced Compensation: The government approved a raise in compensation to ₹50,000 per acre.

  • Flexible Options: Farmers opting out of commercial plots can receive residential plots three times the usual size.

Context and Government Assurances

Previous policies by Akali-BJP and Congress only offered a 150 sq yd residential plot for one kanal of land, without commercial plot provisions for up to three kanal.

Punjab Chief Minister Bhagwant Mann rejected opposition claims of forced displacement, stating the policy aims to boost farmers’ income through commercial site allocations. He emphasized that participation is voluntary, and farmers can continue to cultivate their land until development starts, with increased compensation during this period.

Farmers will also receive a Letter of Intent within 21 days of plot allocation, enabling them to secure loans based on future property rights.

Background and Scale

The revised policy responds to widespread farmer protests and criticism from opposition parties, who fear the plan threatens rural livelihoods.

Housing Minister Hardeep Singh Mundian earlier promised concessions for farmers in 164 villages earmarked for land pooling.

The government targets acquiring a total of 65,533 acres:

  • 43,983 acres for residential development

  • 21,550 acres for industrial zones
    across 21 cities and towns.


This policy revision marks a significant shift in Punjab’s approach to land pooling, aiming to balance development goals with farmers’ rights and benefits.

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