The Punjab government has approved an increase in compensation for farmers whose land is acquired — from ₹30,000 to ₹50,000 per acre per year.

In a meeting led by Chief Minister Bhagwant Mann, the Cabinet also decided that farmers losing smaller land areas (from 1 to 7 kanals) will receive residential plots and commercial sites as part of the deal.

For example:

A farmer giving 1 kanal of land will get:

A 125 sq. yd. residential plot

A 25 sq. yd. booth (shop)

A farmer giving 7 kanals will receive:

Three residential plots of 500, 250, and 125 sq. yds.

A Shop-Cum-Office (SCO) of 100 sq. yds.

A shop site of 75 sq. yds.

If a farmer chooses not to take commercial land, their residential plot size will be increased threefold.

CM Mann stated that farmers can continue farming and earning from their land until the government begins development work. He also emphasized that no one will be forced to give up their land.

A Letter of Intent (LoI) — offering a 1,000 sq. yd. residential plot and a 200 sq. yd. commercial site in exchange for one acre of land — will be issued within 21 days to farmers opting for land pooling.

Farmers can also take bank loans against the LoI, and land registration will not be blocked, Mann assured.

These new offers were announced by Housing Minister Hardeep Singh Mundian on Monday, after meeting with farmers from 164 villages. The government aims to acquire 65,533 acres across 21 cities and towns to build residential and industrial zones.

However, many farmers, unions, and opposition parties have opposed the land pooling policy, calling it an attempt to take away farmers’ livelihoods and displace rural communities.

CM Mann denied these claims, saying the opposition is spreading false propaganda. He assured, “These commercial plots will help farmers earn. I’m a Punjabi too — why would I introduce a policy to hurt farmers? That’s not going to happen.”