Punjab Finance Minister Harpal Singh Cheema on Thursday announced a landmark initiative by Chief Minister Bhagwant Singh Mann-led Punjab government: the implementation of an innovative land pooling policy aimed at fostering transparent and planned urban development across the state.

This policy marks a significant departure from past practices, prioritizing voluntary participation and empowering landowners to become active stakeholders in Punjab’s progress.

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Addressing a press conference at Punjab Bhawan here on Thursday, Finance Minister Harpal Singh Cheema emphasized the policy’s core principle of 100 per cent voluntary participation. “Under this visionary policy, there will be no forcible land acquisition. We have developed a model that respects the rights and aspirations of our farmers and landowners,” he said.

The finance minister also highlighted the substantial economic benefits for participating landowners. “This policy directly addresses the growing demand for affordable housing in our urban centres, driven by Punjab’s rapid urbanization. Market estimates indicate that farmers who participate in this Land Pooling Policy stand to gain up to a 400 percent return on their land investment,” he stated.

Cheema further explained that the development agencies of the Punjab government would be responsible for developing the pooled land, ensuring the provision of modern infrastructure, including roads, water supply, sewerage, drainage, and electricity. “Once developed, the land will be returned to the original landowners in proportion to their contribution. It will appreciate significantly in value, and landowners will have the autonomy to use their developed plots as they see fit—whether for personal use or for sale,” he added.

Positioning this policy as a decisive blow against land mafias and illegal colonies, Cheema remarked, “For the past three decades, the Congress and Akali-BJP governments operated in collusion with the land mafia, enriching their political allies at the expense of our farmers. This policy puts an end to that corrupt system.”

He also criticized the Opposition for their attempts to mislead the public about the AAP government’s efforts to revolutionize urban development and empower landowners. “Their outrage is a transparent attempt to protect their crony land mafia. During their tenures, countless acres were forcibly seized from farmers and sold to developers for exorbitant profits. They fear that the AAP government’s plan to extend the Land Pooling Policy to all major cities in Punjab—ensuring affordable and world-class housing—will dismantle their lucrative networks of corruption,” he alleged.

The benefits of the new policy become evident when compared to the old land acquisition system. For example, if the market rate of one acre of land is ₹1.25 crore, under the old policy it would be acquired for only Rs 1.2 crore—calculated using the collector rate of Rs 30 lakh, multiplied by a factor of 2 (for rural areas), and adding a 100 per cent solatium, as per an official statement.

In contrast, under the new land pooling policy, the landowner would receive a developed residential area of 1,000 square yards and a commercial area of 200 square yards in exchange for contributing one acre of land. Assuming a market value of Rs 30,000 per square yard for residential land and Rs 60,000 per square yard for commercial land, the total value received would be approximately Rs 4.2 crore (1,000 sq yds × Rs 30,000 + 200 sq yds × Rs 60,000).