Officials estimate that selling these developed properties could yield a net revenue of INR 2,789 crore.
Punjab to Unlock Billions from Unused Government Land Amid Fiscal Crunch
The Punjab government is facing a deepening fiscal crunch, and it has accelerated plans to monetise unused state land under a decades-old policy to generate needed revenue on an urgent basis. According to government officials, the Optimum Utilisation of Vacant Government Lands (OUVGL) Scheme will be the major tool to unlock value from idle land parcels across the state.
On Thursday, at a meeting of the empowered committee chaired by Chief Secretary KAP Sinha, bureaucrats discussed the development cost and projected revenue from several identified land pockets in cities including Patiala, Bathinda, Amritsar, Ludhiana and Jalandhar. Officials estimate that selling these developed properties could yield a net revenue of INR 2,789 crore.
Punjab’s finances have been under stress for months. Outstanding debt reached about INR 4 lakh crore, and rising expenditure on subsidies, salaries and pensions leaves little room for new capital projects. Sources in the state government said that with the next Vidhan Sabha elections just over a year away, the Aam Aadmi Party government is under pressure not only to fund infrastructure but also to meet flagship commitments such as monthly honoraria of INR 1,100 for women.
The land parcels slated for monetisation belong to multiple departments, including the Punjab State Power Corporation Ltd (PSPCL), the Health and Transport departments, MARKFED, the Punjab Mandi Board, the Punjab Agro Industries Corporation and the Punjab Khadi and Village Industries Board. Of the total expected revenue, officials said that around INR 2,219.58 crore is projected to come from six PSPCL sites alone.
One notable case discussed was a 57.82-acre Forest Department site in Mullanpur Garibdas village (Mohali), previously transferred back from urban development authorities due to green belt rules and now cleared for alternative use. Officials added that compensatory afforestation will be undertaken on other government land in Ludhiana to offset this.
The renewed focus on the OUVGL Scheme marks a significant shift in strategy after the government earlier scrapped land pooling policies in the face of protests and legal challenges, underlining the acute need for funds and the urgency to leverage state assets more effectively, government sources said.
Source: The Tribune
