Punjab Cabinet Approves Third Revision of Land Pooling Policy, Offers Enhanced Benefits to Landowners

In a bid to address concerns raised by farmers and landowners, the Punjab Cabinet has approved the third revision of the state's Land Pooling Policy, introducing a series of enhanced benefits for those surrendering land for urban development projects. The revised policy, approved during a Cabinet meeting chaired by Chief Minister Bhagwant Singh Mann, increases the size of residential and commercial plots allotted to landowners in exchange for land pooled under the Land Pooling Policy, 2021.

Under the amended policy, landowners will receive an additional 10 to 40 square yards of residential or commercial plot per acre of land contributed to the scheme. For land pooled under the mixed-use and general category, the commercial plot entitlement has been increased from 200 square yards to 210 square yards per acre, while the residential entitlement remains unchanged at 1,000 square yards.

Similarly, under the residential category, plot entitlement has been enhanced from 1,600 square yards to 1,630 square yards per acre. In the commercial category, the entitlement has been increased from 800 square yards to 840 square yards per acre. These revised benefits will apply to landholdings exceeding one acre.

To benefit owners of smaller and fragmented land parcels, the Cabinet has also approved the issuance of Special Letters of Intent (LOIs). The entitlement for fractional holdings will be calculated on a proportional basis, and these LOIs will be fully tradable. Landowners will be able to accumulate LOIs until they become eligible for a specific plot size, which can then be redeemed for a developed plot under the policy.

In another significant relief measure, the Cabinet has decided to waive stamp duty for original landowners during the registration of developed plots allotted under the scheme.

The state government has also amended its oustee policy to extend developed plot benefits to landowners whose land is acquired for roads and other public infrastructure projects. Under the revised provisions, those losing up to one acre of land will receive a 200-square-yard developed plot. Landowners whose acquisition ranges between one and 2.5 acres will be entitled to a 300-square-yard plot, while those surrendering more than 2.5 acres will receive a 500-square-yard developed plot.

The latest amendments mark the third revision of Punjab's land pooling framework since the Aam Aadmi Party (AAP) government assumed office. The first version, notified in June 2025, was withdrawn following widespread farmer protests and judicial intervention. A second version introduced in November 2025 also faced strong opposition from farmers and landowners, prompting the government to revise the policy once again in an effort to make it more acceptable.

The government expects the enhanced compensation package and additional safeguards to encourage greater participation in land pooling projects while addressing concerns raised by stakeholders. However, it remains to be seen whether the latest amendments will ease opposition from farmer groups, many of whom continue to question the policy's long-term impact on agricultural land and landowners' rights.