Punjab Pitches Gradual Land Pooling, Big Cities First, Small Towns on Hold

The Punjab government has decided to implement its land pooling policy in a phased manner, initially limiting it to major urban centres such as Ludhiana, Patiala, and Mohali, while putting on hold plans for land acquisition in smaller towns.
Officials said this approach aims to avoid resistance from farmers and local communities by first demonstrating the policy’s benefits in areas where it has already shown partial success. In Mohali, around 1,000 acres have been acquired under land pooling. In Ludhiana, 300 acres have been pooled, with potential for industrial and residential expansion, against a target of 46,861 acres. In Patiala, 80 acres have been offered, with another 50 acres in the pipeline.

A senior government official said, “We want to showcase this as a win-win opportunity for farmers, where they retain a stake in the land’s future value, before extending it to other towns.”

Opposition & Clarification

The land pooling plan has faced protests, with opposition parties accusing the AAP government of forcibly altering rural land-use patterns. Officials, however, argue that the master plans for these areas were prepared between 2008 and 2016, long before AAP came to power.
“We are only implementing previously notified master plans, responding to present and future urbanisation needs,” an official said.

The government has framed its decision under the “doctrine of continuity,” emphasising that Punjab must transition from a largely agrarian base to an industrial and services-driven economy.

Economic Imperative: Building Land Banks

The lack of readily available land has constrained Punjab’s ability to attract large-scale industrial investments. A senior official cited the example of Dubai-based Aqua Bridge, which relocated to Uttar Pradesh due to land unavailability in Punjab.
“We need land banks to offer plots at competitive prices to investors who can generate employment and boost Punjab’s economy,” the official said.

Planned Expansion Across 24 Locations

Earlier, the Punjab government had proposed acquiring 65,533 acres of land across 24 locations, including 46,861 acres in Ludhiana alone. These locations included major cities such as Amritsar, Bathinda, Jalandhar, Mohali, and Patiala.

Proposed Tier-2 and Tier-3 towns included: Tarn Taran, Pathankot, Gurdaspur, Mansa, Nakodar, Kapurthala, Phagwara, Sultanpur Lodhi, Nawanshahr, Hoshiarpur, Jagraon, Samrala, Ferozepur, Moga, Sangrur, Fatehgarh Sahib, Rajpura, and Ropar.
For now, however, these smaller towns will not see immediate land pooling activity.

Implications

Farmer Sensitivities and Political Messaging

By staggering implementation, the AAP government aims to counter allegations of land “grab” and ensure farmer buy-in. Land pooling—unlike outright acquisition—offers farmers developed plots in exchange for their agricultural land. However, rural resistance often stems from fears of urban speculation and loss of livelihood.

Industrial & Urban Growth

Punjab’s overdependence on agriculture has limited its growth trajectory. The creation of land banks is intended to attract manufacturing units, logistics hubs, and IT parks, aligning with AAP’s push to generate employment and diversify the economy.

Policy Continuity

AAP’s framing of the initiative as a continuation of earlier master plans is a direct political counter to opposition criticism. It also highlights how long-term urban planning in Punjab has historically suffered from policy discontinuity and political challenges.

Investor Confidence

Readily available industrial land is critical for attracting big-ticket investments, many of which now favour states like Uttar Pradesh, Gujarat, and Maharashtra. A phased rollout could reassure investors of Punjab’s readiness, provided land valuation and infrastructure remain competitive.

Bottom Line

By starting with areas where land pooling has a proven record, Punjab hopes to demonstrate success, reduce resistance, and boost investor confidence. If executed smoothly, this phased approach could accelerate Punjab’s transition to an industrial and service-led economy. However, any political backlash or farmer pushback could delay wider adoption.