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Punjab advances Mohali Aerotropolis project with social impact assessment

#Infrastructure News#Infrastructure#India#Punjab
Last Updated : 10th Oct, 2025
Synopsis

The Punjab government has taken a key step in advancing the Aerotropolis project in Mohali by notifying a Social Impact Assessment (SIA) for 3,553 acres across Blocks E to J. The assessment, conducted under the Right to Fair Compensation and Transparency in Land Acquisition Act, will evaluate social, cultural, and economic impacts on affected communities. Landowners will receive developed residential and commercial plots under the 2021 land pooling policy. GMADA has also floated tenders worth INR 509 crore for infrastructure development in Blocks B, C, and D, while Block A remains stalled due to a 2023 guava orchard scam.

The Punjab government has progressed with the development of the Aerotropolis project in Mohali by notifying a Social Impact Assessment (SIA) for acquiring 3,553 acres across Blocks E to J. This township extends the already developed Aerocity near Shaheed Bhagat Singh International Airport and is being developed under the Greater Mohali Area Development Authority (GMADA).


The notification, issued by the Principal Secretary of the Department of Housing and Urban Development, mandates an SIA under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. This assessment is intended to evaluate the social, cultural, and economic consequences of land acquisition on affected communities. A senior officer involved with the project confirmed that the SIA process will facilitate completion of acquisition by the end of the year.

The government has chosen to implement the 2021 land pooling policy, replacing the earlier cash compensation model. Under this scheme, landowners will receive 1,000 square yards of developed residential plots and 200 square yards of commercial plots per acre acquired. This marks a return to providing physical assets in exchange for farmland, following the withdrawal of a revised land pooling scheme earlier this year.

In parallel, GMADA has floated tenders worth INR 509 crore for developing 1,600 acres across Blocks B, C, and D. Acquisition for these blocks was completed nearly eight years ago, with Letters of Intent (LoIs) already issued to landowners. The tenders cover the construction of grid roads, sewerage and drainage systems, water supply, and underground power lines. The projects are expected to be completed by April 2026, with integrated planning ensuring smooth progress.

Block A, however, remains stalled due to ongoing litigation stemming from the 2023 guava orchard scam. Nearly 100 individuals, including over a dozen government officials, allegedly manipulated land records to falsely claim guava orchards, leading to a loss of around INR 140 crore for the housing department. More than 90% of the disputed land was actually under wheat and paddy cultivation.

The Aerotropolis project has been a priority since June 2022, when Chief Minister Bhagwant Mann approved the project and directed GMADA to expedite its work, emphasizing its significance as a flagship urban development initiative for the region.

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