Chandigarh, July 22: The Punjab Cabinet on Tuesday approved a significant increase in compensation and land benefits for farmers under the state’s land pooling policy, as part of a broader effort to quell growing unrest over land acquisition.
Chaired by Chief Minister Bhagwant Mann, the Council of Ministers gave its nod to raise the annual compensation for acquired land from ₹30,000 to ₹50,000 per acre. Additionally, once possession is taken by the government, this compensation will increase to ₹1 lakh per acre per year, with a 10% annual hike until final allotment.
Farmers will also receive a one-time ₹50,000 allowance upon issuance of the Letter of Intent (LoI), aimed at easing the transition while they await development.
Those giving up landholdings between 1 and 7 kanals will be allotted a mix of residential and commercial plots, with entitlements varying by size. “For instance, a farmer parting with 1 kanal of land will receive a 125-square-yard residential plot and a 25-square-yard booth. In the case of 7 kanals, the compensation will include three residential plots (500, 250, and 125 square yards), a 100-square-yard Shop-Cum-Office (SCO), and a 75-square-yard shop site,” an official release detailed.
Farmers opting out of commercial plots will be compensated with larger residential sites — up to three times the size — to ensure proportional value. In total, those giving 1 acre of land can get up to 1,600 sq yards of residential space if they forgo commercial plots.
CM Mann assured that landowners will be allowed to continue farming and retain their income until development work begins. “No one will be forced to give up their land. These are voluntary agreements,” he said, adding that the revised package was framed after consultations with sarpanches, unions, and farmers.
To facilitate liquidity, the government will issue a LoI within 21 days of a farmer opting into the scheme. Each LoI will guarantee a 1,000-square-yard residential plot and a 200-square-yard commercial site per acre of land. Farmers will be allowed to take loans against the LoI, and its issuance will not restrict land sale or registration.
No other charges will be levied except external development charges (EDC), provided the farmer contributes more than 50 acres to the pooling.
The amendments come against the backdrop of widespread protests by farmers from 164 villages, who allege the policy threatens rural livelihoods. They accuse the government of attempting to displace farming communities under the garb of development. Political parties and farmer unions have joined in, branding the policy exploitative.
Housing Minister Hardeep Singh Mundian had assured protesting farmers of additional benefits on Monday, a day before the Cabinet gave final approval to the enhanced model.
CM Mann, rejecting the criticism as politically driven, said: “The Opposition is spreading false propaganda. The commercial sites being offered will support farmers’ livelihoods. I am also a Punjabi. Why would I bring in a policy that displaces villagers?”
The state government aims to acquire over 65,000 acres across 21 cities and towns under this pooling policy to drive urban expansion and infrastructure development.
