In a sweeping urban expansion initiative, the Punjab government has set in motion one of the largest land acquisition drives in the state’s history, targeting over 11,100 acres across Greater Mohali and New Chandigarh.

The ambitious plan aims to reshape the region with new townships, aerotropolis clusters, industrial hubs, and a flagship commercial centre modelled on Chandigarh’s iconic Sector 17 — while offering landowners a choice between cash compensation and a potentially more lucrative land pooling alternative, according to a report by The Tribune.

The project-wise break-up of the acquisition drive shows the state intends to develop everything from sprawling aerocity clusters and eco-townships to new industrial parks, high-density residential zones and over 1,240 acres of roads crisscrossing both Mohali and New Chandigarh — all under the statutory framework of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.

The land acquisition process is already at an advanced stage for several projects. For Aerotropolis Blocks A, B, C and D — covering 1,651 acres in Mohali — and for the 716-acre Eco City-3 in New Chandigarh, compensation awards have already been announced at over ₹19 crore per acre, with letters of intent to successful bidders being issued currently.

The award for the 309-acre low density/high density residential township in New Chandigarh is scheduled to be announced on March 30, and is learnt to be pegged above ₹19 crore per acre as well.

For the largest single project in the plan — the 3,535-acre Aerotropolis Blocks E, F, G, H, I and J in SAS Nagar — the land acquisition process has reached a decisive stage, with a notification under Section 19 of the Act already issued. This will be followed by the announcement of a compensation award under Section 30.

In Mohali, the proposed new commercial Sector 87 — which the state plans to develop on the pattern of Chandigarh’s iconic Sector 17, the region’s premier commercial and cultural hub — along with the new industrial Sectors 101 and 103, covering a combined 509 acres, have progressed to the Section 11 stage after the mandatory social impact assessment was completed and cleared by the expert committee. These will be followed by notifications under Sections 19 and 30.

For the Industrial Park in Sector 101 (488 acres), the commercial pockets of Sectors 85, 86 and 88 (76 acres), the 1,240 acres earmarked for master plan roads, and the 2,489-acre Aerotropolis Extension in Banur, land acquisition notifications under Section 4(1) have already been issued. These will be followed by social impact assessment studies and subsequent notifications under Sections 11 and 19 and award under Section 30.

For the 90-acre Eco City Extension project in New Chandigarh, the Section 4(1) notification will be issued shortly. With the issuance of acquisition notifications, the sale and purchase of all land parcels under acquisition proceedings have been immediately prohibited.

Land pooling: From compulsory to optional

The current wave of land acquisition marks a significant policy pivot. Earlier this year, the state had launched the Land Pooling Policy under which farmers were to receive developed plots rather than cash — a model that The Tribune first broke — triggering a political firestorm, large-scale farmer protests and an interim stay from the Punjab and Haryana High Court. The government subsequently withdrew the land pooling route entirely in August 2025.

However, the state government notified a revised Land Pooling Policy in November 2025 — but this time made it entirely optional for farmers. Under the current acquisition proceedings, landowners can either opt for the benefits under the new Land Pooling Policy or accept cash compensation as determined under the statutory compulsory acquisition law.

Senior government officials told The Tribune that the new arrangement is heavily loaded in farmers’ favour. Prior to the acquisition notifications, the average market value of land in the GMADA area stood at approximately ₹5 crore per acre. Post-acquisition notifications, values have risen sharply to around ₹8 crore per acre. Under the optional Land Pooling Policy, however, landowners stand to receive developed plots whose combined estimated market value works out to approximately ₹16 crore per acre — more than double the current market price and over three times the pre-notification value.For every acre surrendered under the scheme, farmers are entitled to either 1,600 square yards of residential land, or a combination of 1,000 square yards of residential land and 200 square yards of commercial land (SCO), officials explained.