Punjab's New Land Pooling Policy 2025: Cabinet Will Cover 27 Cities, What It Means for Land Owners

In Punjab, the state cabinet led by Chief Minister Bhagwant Mann has cleared the Land Pooling Policy 2025. The policy, which will initially cover 27 cities and towns, emphasises voluntary participation from landowners and aims to spur planned growth for residential, commercial, industrial, and institutional purposes.

Unlike traditional land acquisition methods, the land pooling model allows owners to voluntarily hand over their land for development and receive a portion of the developed property in return, often of higher market value. This model, intended to ensure that landowners directly benefit from urban expansion, marks a shift from coercive acquisition to collaborative growth, as per a report by PTI.

What Has Changed In The Punjab Land Pooling Policy 

Though the concept is not new, having first appeared under the previous Akali-BJP administration in Mohali, the current policy expanded its reach significantly. As per the earlier framework, a landowner offering one acre received a 1,000 square yard residential plot and a 200 square yard commercial plot. The new policy retains this structure but scales it up across the state, as per media reports.

Energy Minister Aman Arora, who has been the public face of the policy rollout, emphasised that the scheme is designed to promote sustainable development and economic viability for farmers. “The policy ensures guaranteed returns and allows for payment of subsistence allowance at the rate of Rs 30,000 per acre per year for three years. Also, the moment he gets the Letter of Intent, it will become tradable. The government will bear all external development costs, including the construction of roads, drainage, power, and water supply. It will also thwart the spread of illegal colonies in the state,” The Tribune quoted Arora as saying.

What Landowners Will Get Under the New Policy

The land pooling policy promises to return a share of developed land to owners based on how much they contribute, and the purpose it's used for:

In Case Of Residential Use:

If a landowner gives one acre, they’ll get back a 1,000 square yard residential plot and a 200 square yard commercial plot, just like in the earlier Akali-BJP model.

For those who contribute more:

• Land owners giving nine acres will get three acres (33 per cent) back, which can be used for group housing projects or sold to developers.
  
  

• If the land owner contributed 50 acres, returns 30 acres (60 per cent), mainly for plotted residential development.

  In Case Of Industrial and Institutional Use:

For each acre given, the owner receives 1,600 square yards of industrial or institutional land.

In Case Of Commercial Use:

The return for the land owner is 800 square yards per acre.

In Case Of Integrated Industrial Parks:

In this case, the return per acre includes:

• 1,000 sq yards industrial
  

• 300 sq yards residential
  

• 100 sq yards commercial
  

Additionally, the government announced that all development costs, like roads and water, will be covered by the state.