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Punjab Greenlights Acquisition of 5,100 Acres for Mohali, New Chandigarh Expansion

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Chandigarh: In a significant shift back to traditional land procurement methods, the Punjab government has approved the acquisition of more than 5,100 acres in Mohali and New Chandigarh, paving the way for a major phase of urban development. The decision comes months after the state scrapped its land pooling policy, which had faced stiff resistance from farmers and political groups.

According to senior officials, a fresh notification has been issued under Section 11 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. This notification covers 4,059 acres earmarked for new development in Mohali. Separately, compensation awards for another 1,048 acres—already in the acquisition process for New Chandigarh—are expected to be finalised soon.

Major Push Around Aerotropolis and New Sectors

The bulk of Mohali’s expansion—around 3,535 acres—will support the next phase of the Aerotropolis project near the international airport. This land will be used to establish Blocks E through J, extending the key urban hub. An additional 524 acres has been set aside for developing new sectors, including a commercial hub in Sector 87, partial development of Sector 101, and an industrial zone in Sector 103. Officials confirmed that the required Social Impact Assessment has been completed and cleared by the expert committee, a mandatory step before large-scale acquisition.

In New Chandigarh, the state has already concluded assessments for 720 acres, part of the larger 1,048-acre acquisition plan. This follows earlier reporting that compensation decisions were nearing completion, signaling that the process is entering its final administrative stage.

Policy Reversal After Protests

The government’s return to the 2013 acquisition framework marks a decisive turnaround from its now-withdrawn land pooling scheme. That policy, which offered farmers developed plots instead of cash payouts, had sparked widespread demonstrations and political criticism. The Punjab and Haryana High Court’s interim stay further complicated its implementation, ultimately leading the state to abandon the model in August.

Largest Land Exercise in Recent Years

With 5,107 acres now moving through formal acquisition channels, the initiative represents one of Punjab’s most extensive land drives in recent years. Officials say the move is intended to accelerate planned growth in areas bordering Chandigarh, ensuring that compensation rules, transparency provisions, and phased development timelines remain firmly in place.

The renewed acquisition strategy is expected to shape the region’s urban footprint for years to come, reinforcing Mohali and New Chandigarh as key nodes in the Tricity’s expanding metropolitan landscape.

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