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Punjab to create land banks in rural areas

Topics Covered:

Land reforms in India.

Punjab to create land banks in rural areas

What to study?

For Prelims: What are land banks?

For Mains: Significance and implications of this move.


Context: With an aim to create land banks in rural areas to boost industrial development, the Punjab Cabinet has given in-principle approval to amend the law for transfer of common village land in rural areas to the state’s industry department.



The amendment will facilitate gram panchayats to promote development of villages by unlocking the value of ‘Shamlat’ or village common land.

The new rule would pave the way for transfer of ‘Shamlat’ land for industrial projects to the industry department and state-owned Punjab Small Industries & Export Corporation (PSIEC).


Role of panchayats:

The amendments ensure that the Panchayats get their dues, with all decisions to be taken on a case to case basis keeping their interests in view.

  • With this amendment, a gram panchayat could, with the prior approval of the state government, transfer the ‘Shamlat land’ vested in it by way of sale on deferred payment terms to industries department or PSIEC for their industrial infrastructure projects.


What is Shamlat land?

It is one that does not come under habitation and cultivation and is considered as consolidated land holdings for common use.

Sources: the Hindu.