Nearly nine months after scrapping its controversial Land Pooling Policy (LPP) 2025 amid stiff opposition from farmers and political parties, the Punjab government is back with a revised framework, assuring enhanced benefits and greater safeguards to landowners.
The department of housing and urban development has prepared a draft of the new policy, seen by HT, which is expected to be tabled at the upcoming cabinet meeting for approval.
The new draft proposes a series of farmer-centric measures aimed at making land acquisition more transparent, flexible and equitable.
A senior official in the department confirmed that the revised draft was in its final stages. “The draft has incorporated several changes based on feedback from stakeholders and is now ready to be placed before the cabinet,” the official said.
The original policy had brought the Bhagwant Mann-led AAP government under severe criticism, with opposition parties and farmer bodies dubbing it a “looting scheme” aimed at robbing farmers of their land.
The AAP had hit out at opposition leaders for spreading propaganda against the policy, with party leaders describing it as farmer-friendly and a big push for planned urban development.
But with the controversy not dying down, and the Punjab and Haryana high court also imposing a stay, the government eventually withdrew the policy on August 11, 2025.
In the largest land acquisition since 1966, the state government had planned to acquire 65,533 acres across 21 cities and towns in the state to develop both industrial and residential zones. The policy targeted major urban centres, including Ludhiana (24,000 acres), Mohali (6,000 acres), and Amritsar (4,464 acres), along with Patiala, Jalandhar, Bathinda and Sangrur.
A LOOK INSIDE THE NEW DRAFT
Extension of Sahuliyat Certificate validity
To provide farmers with adequate time to explore options for purchasing alternative land or availing benefits linked to acquisition, the government has proposed extending the validity of the Sahuliyat Certificate (facilitation certificate) from two years to four years.
In a related move, the deadline for applying for priority tubewell connections is also proposed to be extended to four years. Departments concerned will be required to install such connections within two months of application submission, ensuring faster service delivery.
Push for transparency and faster development
To address concerns over fairness, the revised policy mandates that all residential and commercial plots — including those in prime locations — be included in the draw of lots. This aims to eliminate discretionary allotments and ensure equal opportunity for all eligible landowners.
The government has also acknowledged delays in development works caused by legal and vigilance-related issues. To overcome these hurdles, it has proposed depositing pending compensation amounts in the Reference Court to facilitate taking possession of land. Authorities have committed to completing development works within three years of acquisition.
Enhanced compensation
In another relief measure, the draft proposes an increase in land pooling benefits. The commercial component has been raised from 200 to 210 square yards per acre, while the residential component has been enhanced from 1,600 to 1,630 square yards per acre. These revisions are expected to improve the overall compensation package and make the scheme more attractive to landowners.
Expanded oustee benefits
The policy also widens the scope of the oustee quota, ensuring that all affected farmers—including those opting for cash compensation—remain eligible for plot allotments. The proposed structure offers 200 square yards for land up to 0.5 acre, 300 square yards for holdings between 0.5 and 2.5 acres, and 500 square yards for those owning more than 2.5 acres.
Additionally, conveyance deeds for original landowners will be executed free of cost, reducing the financial burden associated with property transfer.
Focus on village infrastructure
Recognising the importance of inclusive development, the government has proposed integrating village infrastructure with urban development plans. Key facilities such as schools, parks, and dispensaries will be exempted from acquisition, while sewerage, water supply and road networks will be upgraded on priority.
Houses located along village phirnis will be protected from acquisition, while those outside designated habitation zones will be relocated in a planned manner.