Land Pooling Policy

The Punjab Cabinet, led by Chief Minister Bhagwant Mann, recently approved a new land pooling policy to be launched initially in 27 cities and towns across the state. This policy aims to curb the proliferation of over 14,000 illegal colonies and promote planned urbanization by involving landowners, promoters, and developers as active stakeholders, while safeguarding farmers’ interests through voluntary participation and fair compensation.

Policy Overview and Key Features of Punjab’s Land Pooling Initiative

Land Pooling Policy:

• Voluntary land contribution for integrated development, replacing forced acquisition with shared benefits.

Key Features of Punjab Land Pooling Policy:

• Voluntary Participation: Farmers and landowners voluntarily offer their land for development with no coercion or forced acquisition. Consent (No Objection Certificate) is mandatory before proceeding.
• Incentives to Landowners: For every acre contributed, the owner receives a 1,000 sq. yd. residential plot and a 200 sq. yd. commercial plot. Partial return of pooled land is allowed (e.g., contributing 9 acres returns 3 acres for group housing development).
• Compensation and Flexibility: Landowners receive ?30,000 per acre annually for up to three years during development. They retain the right to exit the scheme anytime, ensuring no long-term binding.
• Stakeholder Involvement: The policy includes landowners, private developers, and government authorities, ensuring balanced participation and investment.
• Curbing Illegal Colonies: The policy supports partial surrender and cancellation of colony licenses under the Punjab Apartment and Property Regulation Act (PAPRA), 1995, addressing rampant unauthorized urban settlements.
• Revenue Generation Measures: Revision and hike of External Development Charges (EDC), Change of Land Use (CLU) charges, and license fees have been approved, with an annual compounded increase of 10% from 2026 to boost state revenue.

Strengths:

• Empowers farmers with choice and benefits, mitigating exploitation risks.
• Encourages planned urban growth and infrastructure provision, reducing illegal colonies.
• Provides fiscal stability through revised charges and incentives for lump sum payments.

Challenges:

• Political opposition alleges possible disguised land acquisition and loss of fertile agricultural land.
• Successful implementation requires robust administrative machinery and transparent governance.
• Infrastructure capacity must meet increased urban demands to avoid poor-quality development.

Way Forward:

• Enhance awareness among landowners about benefits and safeguards.
• Establish transparent monitoring and grievance redressal mechanisms to build trust.
• Pilot the policy in select areas, evaluate, and scale up based on outcomes.
• Coordinate urban local bodies to ensure infrastructure matches the pace of development.
• Address opposition concerns by safeguarding agricultural interests and avoiding land alienation.