Chandigarh, June 2: Chief Minister Bhagwant Singh Mann and his Punjab Cabinet on Monday approved a new and progressive Land Pooling Policy to promote planned and sustainable development in the state. The Council of Ministers made the decision during a meeting at the Chief Minister’s official residence.

Major Relief for Farmers Under New Land Policy

A spokesperson from the Chief Minister’s Office disclosed that the new policy aims to involve landowners, promoters, and companies as stakeholders in the development process and to increase interest in land pooling among landowners. The revised scheme has been rationalised to significantly benefit small and marginal farmers. It offers more options to landowners. This will boost group housing and planned development. Ultimately, these changes will benefit the common man. The policy ensures holistic development by integrating every stakeholder into the process. The new policy will be a game changer for the state as it will provide Major Benefits for Farmers. There will be No More Exploitation of Farmers and Under this Policy, farmers will directly benefit by crores of rupees. Private developers cannot exploit farmers.The policy protects farmers from exploitation by private players.

Land Pooling ; Land Rights Secured: Farmers Decide, Government Delivers

The farmer has complete authority. It will be entirely their decision whether to give land to the government or not. Farmers can either keep their land and continue farming or choose to sell it. There will be no forced acquisition as used to happen earlier. Everything requires the farmer’s written consent (NOC) before proceeding. The farmers will give the land directly to the government. The government will not hand it over to private developers. Government Will Fully Develop the Land and Return Plots to the Farmers. These Plots Will Include All Facilities Like Roads, electricity and water connections, sewerage pipes, street lights, and parks. The Value of These Plots Will Be Up to four Times the Market Rate. Each Farmer Will Receive a Written Document from the Government and This letter will clearly mention the farmer’s full entitlement. Farmers can choose to receive two plots of 500 square yards each and They will have complete freedom to keep or sell them. The benefits are not limited to just one acre. The more land a farmer contributes, the greater the profit will be.

New Policy Offers Land Returns, Ends Land Mafia Rule

Apart from it, there will be additional benefits through partnership. If a farmer contributes nine acres, they will receive three acres of developed group housing land. If Multiple Farmers Pool Together 50 Acres of Land for the Government, they Will Receive 30 Acres of Fully Developed Land in Return. “The government will end land mafia rule and enforce a complete ban on illegal colonies.” *Approval for Conditional Partial Surrender and Cancellation of Licenses Issued to Colonies* The Cabinet also approved the Partial Surrender and Partial Cancellation of Licenses issued to colonies under the Punjab Apartment and Property Regulation Act (PAPRA), 1995, as well as the Partial Cancellation of approvals granted to industrial park projects. A policy in this regard was notified on March 10, 2025, concerning the surrender of licenses for developing colonies under the PAPRA Act and approvals for industrial parks. This decision allows for partial surrender of licensed areas, subject to certain conditions, and partial suspension or cancellation of licenses for such projects.

Incentives Approved for Allottees Making Lump Sum Payments for Plots

To encourage allottees and bidders of residential, commercial, and other property plots to make lump sum payments of 75% of the total amount, the Cabinet approved a series of incentives. The government will offer a 15% discount on the cost of the plot/site to allottees who make a lump sum payment. This measure aims to ensure consolidated revenue for the state government and reduce the number of defaulters. The Cabinet approved an increase in various charges. These include External Development Charges (EDC), Change of Land Use Charges (CLU), and License Fees (LF). Other charges related to real estate promoters are also included. This decision aims to facilitate the state’s holistic development and boost revenue generation. Promoters must pay EDC under the PAPRA Act and for Mega Projects under the Punjab Government’s Mega Project Policy.The last revision of these charges was notified on May 6, 2016, with a provision to increase the rates by 10% annually starting April 1. However, the government waived the annual hike for several years. “The government increased the charges starting April 1, 2020, raising them by approximately 77% since 2016. From April 1, 2026, it will increase CLU charges, EDC, and license fees by 10% annually, compounded.”