Indian Real Estate

Exploring Land Pooling Scheme in India


11, October 2025

Land Pooling, an alternative to land acquisition, has been introduced, revolutionizing urban development in India!

Entering into a new era of urban development, accruing land from landowners is now beneficial for both the government and landowners in India with the help of a land pooling scheme.

Unlike the land acquisition process for planned urban development, the government has introduced land pooling, where land owners can now voluntarily contribute their land to the government's urban development plan and receive a share of the developed property in exchange.

Today, we are going to explore the benefits of a land pooling scheme for landowners and the government. So, without further ado, let's move on to it!

Land Pooling - Meaning

Land pooling is the process of assembling land parcels from landowners/farmers for planned urban development. Unlike land acquisition, in the land pooling scheme, landowners voluntarily agree to participate in the land pooling policy by signing consent forms.

The land enjoys the benefits of receiving a part of the developed property in exchange for the land given for the urban development plan. The land pooling scheme is initiated by the government, encouraging the landowners to voluntarily offer their piece of land for urban development.

Land Pooling Scheme - Who it works

The land pooling policy undergoes several processes to ensure that the objective of the pooling of land is met. The processes involved in the land pooling scheme are:

  • Initiation and Notification: The government or a designated urban development authority identifies a region for development and issues a notification for land pooling.

  • Land Pooling Agreement: Landowners agree to participate in the land pooling scheme. They sign an agreement, transferring their land to the development authority for the duration of the development process.

  • Pooling of Land: The individual land parcels are pooled together into a single, contiguous land parcel for planning purposes.

  • Planning and Development: The development authority undertakes comprehensive planning for the pooled land. This includes designing infrastructure such as roads, sewage systems, parks, schools, and other public amenities. The land is then developed according to this master plan.

  • Reconstitution of Plots: After development, the pooled land is reconstituted into smaller, well-planned plots. These plots are then redistributed back to the original landowners. Typically, the landowners receive smaller plots than their original holdings, but the value of these plots is significantly higher due to improved infrastructure and planning.

  • Distribution of Benefits: The landowners receive their new plots, often with a portion of the land reserved for public use and infrastructure. The increase in land value due to the development is intended to compensate the landowners for the reduction in their land area.

  • Sale of Reserved Land: The development authority may sell or lease a portion of the land reserved for commercial or residential purposes to recover the costs of development and infrastructure provision.

  • Legal and Regulatory Compliance: Throughout the process, the development authority ensures compliance with legal and regulatory requirements, including obtaining necessary approvals and clearances.

  • Monitoring and Evaluation: The entire process is monitored and evaluated to ensure that the objectives of the land pooling scheme are met, and any issues are addressed promptly.

The land pooling scheme was initiated according to the land pooling policy 2013. As per the land pooling policy 2013, landowners are encouraged to transfer their land parcels for city urban development. Further, spanning land will be sold for urban development, and the homeowners will be receiving 80% profit or parts of the developed property.

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Land Pooling Scheme in India - Examples

Land pooling was first initiated in Gujarat, as part of The Bombay Town Planning Act, 1915. After that, several government authorities have initiated the land pooling policy in their region. Some of them includes:

Likewise, several development authorities have initiated their land pooling scheme for landowners and farmers, encouraging them to be part of the city's urban development.

Some of the most renowned among the above land pooling scheme initiatives involve:

  • Amaravati: The Andhra Pradesh Capital Region Development Authority(APCRDA) proposed a land pooling scheme, where several farmers in Andhra Pradesh participated in the pooling of land that led to the establishment of Amaravati, the capital of Andhra Pradesh.

  • DDA Land Pooling Policy: Under the DDA land pooling policy, about 200 villages in the outskirts were identified, and with the land pooling initiative by DDA, 90 villages were made developed regions, and the other 90 were made urban villages.

Benefits of Land Pooling Scheme

The land pooling scheme is initiated by each government of the state of India to encourage farmers and landowners to offer their agricultural land parcels, pool them, and establish a large land for the urban development of the city. There are several advantages or benefits of land pooling policy, both for the government and the landowners:

  • The land pooling scheme encourages farmers/landowners to foster the urban development of the region.

  • The land pooling policy helps reduce the conflicts and resistance that caused due to compulsory land acquisition.

  • It helps promote sustainable urban development by utilization of resources and collaborative planning.

  • It significantly reduces the cost of development in the region, as the cost is shared among the landowners, and the utilization of resources offered by each land helps reduce the extra expanse of land resources for the planned urban development.

Benefits for Farmers/Landowners:

Unlike compulsory land acquisition, the land pooling scheme won't let landowners/farmers give away their land unwillingly to the government, without any benefits. The land pooling policy is beneficial for both the government and landowners/farmers. Some of the major benefits of land pooling for farmers and landowners are:

  • Increased land value is one of the key benefits of land pooling offered for the landowners. With the infrastructural development, their pooled land will enjoy price appraisal and can enjoy the possession of the developed plot.

  • Fair compensation and incentives are offered to the landlords in the form of financial compensation or incentives as free developed residential or commercial plots.

  • The land pooling scheme guarantees a minimum return on investment, thus reducing financial risks and uncertainty for landowners.

  • With participation in the planned urban development, the landowners can enjoy the benefits of job creation and business opportunities.

Land Acquisition v/s Land Pooling

Both land acquisition and land pooling are government-authorized initiatives. So, what makes them stand apart from each other? Both policies have their differences, that make them different from each other.

Come, let's dive into the key differences between land acquisition and land pooling schemes!

  • Land acquisition is a process where landowners or farmers have to compulsorily give away their land to the government for planned urban development of the city. The pooling of land, on the other hand, is a scheme where the government encourages farmers/landowners to voluntarily pool their land for the cities' urban development planning.

  • Being a compulsory process, landowners won't receive any benefits from giving away their land for planned urban development. As for land pooling, landowners and farmers receive significant financial compensation or a part of developed land in exchange for voluntarily offering their land.

  • Unlike land acquisition, land pooling allows the landowners and farmers to keep the land ownership of the developed land that they got as compensation.

  • In the land pooling process, the landowners are allowed to have control over the urban development in the offered land. As for land acquisition, the authorities decide over the acquired land.

That's it, folks. These are all you need to know about the land pooling scheme in India. Do share your thoughts on this government initiative in the comment section below!

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Most Frequently Asked Questions?

What is the meaning of land pooling?

Land pooling is an alternative government initiative of land acquisition, where the government encourages landowners and farmers to voluntarily pool their land with planned urban development and in exchange receive their developed land as compensation.

What does pooled land mean?

Under the land pooling initiative, farmers/landowners can voluntarily pool their land for the planned urban development, and these land offered for the development is known as pooled land.

What is the difference between land acquisition and land pooling?

Land acquisition is a compulsory government initiative, where landowners have to give away their land to the authority for the city's planned urban development.

What are the land poling schemes in India?

Several state governments in India have put forward many land pooling schemes, and some of the most notable ones that brought changes are, DDA land pooling policy, HMDA land pooling scheme, APCRDA land pooling scheme for Amaravati.

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