Punjab revamps Land Pooling Policy-2025

Chandigarh: In a significant move aimed at supporting farmers, the Punjab Cabinet on Tuesday approved several amendments to the Land Pooling Policy-2025, making it more farmer-friendly and attractive for landowners.

The key provision guarantees that farmers opting for land pooling will now receive an annual livelihood allowance of Rs 1 lakh until their land is developed—a fivefold increase from the earlier Rs 20,000 granted by previous governments. The amount will also rise by 10 percent annually, officials said.

To ensure speedier and transparent processes, the government will issue a Letter of Intent (LOI) within 21 days of pooling. Farmers can sell the LOI or use it to secure loans. Until development begins, they can continue cultivating their land and will also get an additional support of Rs 50,000 per year.

The amendments also remove all restrictions on buying, selling, or registering pooled land, giving farmers complete flexibility.

The changes, aimed at streamlining land acquisition for Punjab Urban Planning and Development Authorities (PUDA) and other development authorities, were shaped after consultations with sarpanches, unions, and farmers’ representatives.

Under the revised policy, landowners will receive 125 square yards of residential land and 25 square yards of commercial land per kanal acquired.

Upon issuing the LOI, the department will pay a lump sum of Rs 50,000. The annual Rs 1 lakh allowance, with 10 percent yearly increments, will continue until developed plots are handed over.

For land pooling involving 50 acres or more, only External Development Charges (EDC) will apply, with no additional fees.

Farmers surrendering commercial land will receive three times the equivalent area in residential plots. For instance, a farmer contributing one acre will receive 1,600 square yards of residential land in the urban estate.