Punjab cabinet approves land pooling policy

Hindustan Times

4 days ago

The Punjab cabinet on Monday gave its nod to the land pooling policy in a meeting chaired by chief minister Bhagwant Mann.Initially, the policy will be launched in 27 cities and towns of the state, the government said.
The policy was given clearance amidst vocal protests by farm unions and opposition parties.
According to the government, the new policy is aimed at curbing illegal colonies in the state, which as per a survey have crossed 14,000 in number.
Addressing a press conference, renewable energy minister Aman Arora informed the mediapersons that the new policy involves landowners, promoters, and companies as stakeholders in the development process.
'The revised scheme has been rationalised to benefit small and marginal farmers significantly, offering more options to landowners, which will boost group housing and planned development, ultimately benefiting the common man,' Arora said.
Farmers can voluntarily offer their land for development and, in return, receive a residential plot and a commercial site in lieu of one acre of land, the minister added.
As per the policy, for every one acre of land contributed to the developer, the owner will receive a 1,000-square-yard residential plot and a 200-square-yard commercial plot.
'There will be no exploitation of farmers, as they will benefit as private developers, farmers can continue farming or choose to sell it. There will be no forced acquisition as it used to happen in the past,' said Arora, adding that nothing will proceed without the farmer's consent (NOC) and the land will be given to the government authority.
Replying to a question, Arora clarified that the policy has been launched on a voluntary basis left to the discretion of the farmer and the land owners.
'Farmers will have the choice to develop the land themselves and work like an entrepreneur or give the land to the state government authority or a private developer,' he said.
'If a person/farmer/landowner contributes nine acres of land, three acres will be returned to the owner for developing a group housing society—meaning one-third of the pooled land is returned to the owner,' the minister added.
Arora explained that until the owners receive the residential and commercial sites, they will be paid ₹30,000 per acre per year for up to three years and the land owner would not be under binding as was in the land pooling policy launched by the previous governments that he cannot move out of the agreement while the development by the government was underway.
'The farmer can quit the scheme at the time of his choice,' he said.
'This policy brings an end to land mafia rule and there will be a complete ban enforced on illegal colonies,' Arora asserted.
Partial surrender allowed
The cabinet also approved the partial surrender and partial cancellation of licenses issued to colonies under the Punjab Apartment and Property Regulation Act (PAPRA), 1995.
A policy in this regard was notified on March 10 concerning the surrender of licenses for developing colonies under the PAPRA Act and approvals for industrial parks. This decision allows for partial surrender of licensed areas, subject to some conditions.
To encourage allottees and bidders of residential, commercial, and other property plots to make lump sum payments of 75% of the total amount, the cabinet approved a series of incentives. A 15% discount on the cost of the plot/site will be offered to allottees who make a lump sum payment.
'This measure is expected to ensure consolidated revenue for the state government while also reducing the number of defaulters,' the government said.
Hike in EDC, CLU charges
To boost revenue generation, the cabinet also approved an increase in external development charges (EDC), change of land use charges (CLU), license fees (LF), and other charges applicable to real estate promoters.
The promoters are required to pay EDC under the PAPRA Act and for mega projects under the Punjab government's Mega Project Policy. The last revision of these charges was notified on May 6, 2016, with a provision to increase the rates by 10% annually starting April 1.
However, the government waived the annual hike for several years. The charges have been increased from April 1, 2020, and have gone up by approximately 77% since 2016. Going forward, CLU charges, EDC, and license fees will be increased by 10% annually, compounded from April 1, 2026.
Ploy to usurp farmer's land: SAD
Shiromani Akali Dal (SAD) spokesman Arshdeep Singh Kler on Monday said that the AAP government led by Bhagwant Mann was usurping farmers' land.
'It was shocking to see that the AAP government was going to acquire agricultural land and sell it to builders and developers. It is most unfortunate to see that the present AAP government, which had promised the moon to the farmers, was now trying to take away fertile land from them at throw-away prices, Kler said adding that Akali Dal would stand with the farmers and would ensure that their land was not forcibly taken away from them.