The policy, introduced to facilitate planned urban development across 27 cities, has faced opposition from farmer groups and political parties who label it anti-farmer and a “land-grabbing scheme.”
In response to mounting farmer protests and political backlash, the Punjab Cabinet led by Chief Minister Bhagwant Mann has amended the Land Pooling Policy 2025. The changes aim to address concerns over transparency, compensation, and inclusivity, especially for small and marginal farmers.
The policy, introduced to facilitate planned urban development across 27 cities, has faced opposition from farmer groups and political parties who label it anti-farmer and a “land-grabbing scheme.” In retaliation, CM Mann has accused opposition parties of spreading misinformation and politicizing a voluntary development initiative.
Under the revised policy, farmers who voluntarily opt in will receive a Letter of Intent (LoI) within 21 days of registration. Until development work begins, they will receive ₹50,000 per acre annually, while retaining full rights to cultivate their land and retain all profits. Once development begins, this amount will increase to ₹1 lakh per acre per year, with a 10% annual increment until the project is completed.
Farmers contributing one acre of land will be entitled to a 1,000 sq yard residential and 200 sq yard commercial plot in a developed urban estate. Those contributing one kanal (approx. one-fifth of an acre) will now receive 125 sq yards of residential and 25 sq yards of commercial space, a change made in direct response to smallholders’ concerns. Farmers will also be allowed to take loans based on the LoI, adding financial flexibility.
CM Mann defended the policy as “pro-farmer and development-driven,” reiterating its voluntary nature. “If landowners do not want to pool land, they are free to sell or mortgage it. No one is being forced,” he said. The government has pledged to cover external development costs—roads, power, water supply—to ensure modern infrastructure.
As Punjab heads toward elections in March 2027, the Land Pooling Policy 2025 remains a politically sensitive issue. Its success depends on the government’s ability to rebuild farmer trust and demonstrate that development can coexist with agricultural welfare.