In a strategic move to promote planned urban growth and equitable land development, the Punjab Government has launched its Land Pooling Scheme (LPS) in various cities across the state. This progressive initiative is set to redefine how land acquisition and infrastructure development are managed, ensuring transparency, inclusivity, and sustainable urban expansion.
What is the Land Pooling Scheme?
The Land Pooling Scheme is an urban development model that enables landowners to voluntarily contribute their land for planned infrastructure and real estate development. Instead of monetary compensation, the landowners receive a portion of the developed land back, which significantly appreciates in value due to the infrastructure and amenities provided by the government.
Under this scheme, the Punjab Urban Planning and Development Authority (PUDA) and other local urban development bodies act as facilitators, ensuring fair participation and benefits for landowners while simultaneously streamlining urban planning.
Key Features of Punjab’s Land Pooling Model
- Voluntary Participation: Landowners willingly participate by contributing their land, helping avoid the need for forced acquisition.
- Equitable Return: A certain percentage of the developed land is returned to the original owners, often along with enhanced infrastructure and services.
- Transparency: The process is carried out with clear guidelines and communication to ensure stakeholders’ confidence.
- Integrated Planning: Comprehensive planning includes roads, sewage systems, parks, commercial zones, and public facilities, transforming rural or underdeveloped areas into modern urban settlements.
- Sustainable Growth: By promoting in-situ development and efficient land use, the scheme supports sustainable urbanization.
Cities Benefiting from the Scheme
The Land Pooling Scheme has already been initiated or proposed in multiple cities across Punjab, including:
- Mohali: Areas around the Aerocity and IT City are under LPS for high-end urban development.
- Amritsar: Plans for smart city components and infrastructure-led growth under the LPS model.
- Ludhiana: Focus on decongesting the city and developing new residential and commercial hubs.
- Patiala and Bathinda: Identified as upcoming zones for expansion under the scheme with proposed connectivity enhancements and smart amenities.
These cities are being reshaped into modern urban zones that meet the needs of expanding populations while preserving landowner rights and fostering economic growth.
Benefits to Stakeholders
- For Landowners: Increased land value, better infrastructure access, and a share in urban development.
- For Developers: Access to well-planned land banks for residential, commercial, and industrial projects.
- For Citizens: Improved living standards through organized neighborhoods, better transport, and civic amenities.
Future Outlook
The Land Pooling Scheme is not just a policy – it’s a vision for Punjab’s urban future. By aligning the interests of the government, landowners, developers, and the public, the state is setting a benchmark in participatory urban development. The scheme encourages a cooperative ecosystem that balances economic, environmental, and social development.
As Punjab continues to urbanize, this forward-thinking scheme will play a pivotal role in shaping inclusive, resilient, and smart cities across the state.

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