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CHANDIGARH: The Chandigarh administration finds itself in a complex situation, balancing increasing pressure from the Centre to optimize limited urban land with ongoing demands from farmers and internal planning challenges regarding the future development of the UT’s remaining peripheral villages.
On one hand, there’s a push for farmer-friendly initiatives; on the other, financial constraints and a commitment to the Chandigarh Master Plan-2031 are urging a return to traditional outright land acquisition methods.
Large swathes of agricultural land near 22 periphery villages remain undeveloped. Land pooling, once viewed as a collaborative alternative, has encountered technical hurdles such as insufficient contiguous land parcels and predetermined uses for green spaces, residential areas, and institutional projects.
Officials are currently evaluating the financial ramifications of both approaches, with initial calculations indicating a preference for direct acquisition.
A senior official revealed that, with about 1,500 acres available for development, the total cost of acquisition at current collector rates would be approximately Rs 10,500 crore. Retaining 50% of the land (750 acres) for infrastructure and public services, the auction of the remaining 750 acres could generate an estimated Rs 78,000 crore, yielding a significant revenue of Rs 66,000 crore for the government, as per their assessments.
In contrast, the land pooling approach (where landowners receive a portion of developed plots) would result in far less land for auction—either 375 or 450 acres based on the sharing ratio. In the first scenario, auction revenue would be about Rs 37,500 crore, while in the second it could climb to Rs 45,300 crore.
This means a potential loss of Rs 28,500 crore to Rs 20,700 crore for the administration compared to the outright acquisition method.
The administration initially considered a land pooling policy in September-October 2021, prompted by then UT Administrator Banwarilal Purohit’s directive to utilize surplus land according to the Master Plan-2031. The Indian Institute of Human Settlements (IIHS) was tasked with drafting a framework.
However, in August 2024, the administration reversed its stance, deeming land pooling “not feasible” due to planning restrictions.
In 2025, the Ministry of Home Affairs (MHA) informed Parliament that no land pooling policy was in development for Chandigarh.
Hope for the policy was briefly rekindled in January 2026 when UT administrator Gulab Chand Kataria suggested a comprehensive approach, leading to renewed expectations among farmers advocating for land pooling.
Nonetheless, by February 2026, Chief Secretary H Rajesh Prasad indicated that the administration preferred to adhere strictly to the Master Plan allocations, distancing itself from the policy.
In recent decades, substantial land acquisition in Chandigarh has been limited. Most acquisitions occurred during the 1950s (initial phase for establishing the capital) and the 1960s-70s (sector expansion), when over 50 villages were affected. Minor acquisitions took place in the 2000s, notably for the Chandigarh Information Technology Park. Since then, significant acquisition efforts within UT boundaries have mostly ceased.
With land pooling effectively off the table, the administration now appears to favor direct acquisition to meet future development needs, despite ongoing protests from farmers advocating for a more inclusive approach.
“This ongoing dilemma underscores the delicate balance the Chandigarh administration must strike between financial gains, urban planning, and fulfilling the long-standing aspirations of peripheral villagers,” remarked the official.
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