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Tribune Exclusive: Punjab to acquire 11,103 acres in Mohali, New Chandigarh for infra push

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In one of the most ambitious urban expansion drives in Punjab’s history, the state government has set in full motion the compulsory acquisition of a whopping 11,103 acres across Greater Mohali and New Chandigarh to build seven new townships, seven new sectors, three new pockets of Aerotropolis near the Chandigarh international airport, and a brand-new commercial city centre in Sector 87 Mohali modelled on Chandigarh’s iconic Sector 17, the acquisition plan exclusively accessed by The Tribune reveals.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.Mohali to be Chandigarh’s envyWhat we are building in Mohali and New Chandigarh is Punjab’s own answer to Chandigarh — bigger, bolder and built by our own people on our own land. When Sector 87 rises as Mohali’s Sector 17, when the Aerotropolis becomes the region’s commercial engine, and when New Chandigarh emerges as a world-class township, people will not need to look across the boundary. They will have everything — and more — right here. The day is not far when Chandigarh will look at Mohali and New Chandigarh with envy, not the other way around. This is not just land acquisition — this is Punjab’s urban renaissance, and it starts now. — Bhagwant Mann, Chief MinisterFarmers launch pucca morchaFarmers from villages affected by the massive acquisition drive have launched a pucca morcha at the GMADA headquarters in Mohali. The morcha has been backed by the Congress, SAD and the BJP.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 optionalThe 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.

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