CHANDIGARH, May 23: Punjab Finance Minister Harpal Singh Cheema on Thursday launched the state’s much-anticipated land pooling policy, positioning it as a key step toward urban expansion and economic revival amid fiscal stress.
The initiative, aimed at developing new townships near urban hubs—including Ludhiana, where over 24,000 acres of agricultural land may be repurposed—comes as the state grapples with mounting debt and limited revenue options.
Cheema said that the policy marks a clear shift from earlier models of land acquisition, with a focus on voluntary participation by landowners. “There will be no forcible land acquisitions,” he said. “We developed a model that respects the rights and aspirations of our farmers and landowners. Participation is entirely voluntary.”
He projected the policy as a catalyst for urban growth and housing development. “This initiative addresses the urgent need for affordable housing in expanding urban centres. Market estimates suggest that farmers opting in could see up to a 400 per cent return on their land investment,” Cheema claimed.
Under the policy, government agencies will manage the development of pooled land, ensuring infrastructure such as roads, electricity, water supply, sewerage and drainage. Once developed, the land will be returned to its original owners proportionate to their contribution. “Landowners will retain full autonomy—whether to use the developed land or sell it,” Cheema added.
However, the announcement drew swift criticism from Opposition leaders. Shiromani Akali Dal president Sukhbir Singh Badal and Punjab Congress chief Amrinder Singh Raja Warring raised concerns about the ecological and social impact of the move.
“This policy threatens to turn farmers into landless labourers and could have devastating ecological consequences,” Warring said.
Badal echoed the sentiment, warning that the aggressive push for urbanisation could irreversibly alter the state’s agricultural landscape.
Despite political pushback, the government maintains the policy is a voluntary and economically beneficial opportunity for farmers willing to engage in urban transition.
