Estimated reading time: 4 minutes

Aerotropolis Latest News: Punjab Pushes Ahead with 3,553-Acre Township in Mohali

The ambitious Aerotropolis project in Mohali has entered a decisive phase after the Punjab government notified a social impact assessment (SIA) for 3,553 acres of land. The township, planned as an extension of Aerocity near Shaheed Bhagat Singh International Airport, is being developed under the Greater Mohali Area Development Authority (GMADA).

The notification, issued by Vikas Garg, principal secretary of the housing and urban development department, mandates that the acquisition process follow the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. Officials confirmed that the SIA will assess the social, cultural, and economic consequences for affected communities.

A senior officer linked to the project said the assessment is expected to pave the way for the acquisition process to conclude by the end of the year. The state has opted for the 2021 land pooling policy, under which landowners will receive 1,000 square yards of developed residential plots and 200 square yards of commercial plots per acre. This model replaces direct cash compensation, reflecting a policy shift that comes just two months after the withdrawal of a revised land pooling scheme.

The government believes this approach offers landowners long-term value while easing resistance to acquisition. Officials added that the decision underlines a return to a framework that compensates in tangible assets rather than immediate payouts.

Parallel to the SIA notification, GMADA last week floated tenders worth ₹509 crore to develop 1,600 acres in Blocks B, C, and D. Acquisition for these blocks was completed nearly eight years ago, and Letters of Intent (LoIs) have already been distributed to landowners. Block A, however, remains entangled in litigation following the “guava orchard” scam uncovered in May 2023.

The scam revealed that nearly 100 individuals, including government employees, allegedly manipulated records to falsely declare guava orchards on agricultural land. Investigations showed that more than 90 percent of the land was cultivated with wheat and paddy. The fraudulent claims cost the housing department nearly ₹140 crore and delayed progress on the project.

Despite setbacks, officials insist Aerotropolis remains a government priority. Chief Minister Bhagwant Mann has previously directed GMADA to accelerate work, describing the project as a flagship urban development for the region. First announced in June 2022, the township has since been positioned as a key growth driver in Punjab’s real estate and infrastructure strategy.

The masterplan envisions 8,600 residential plots ranging from 100 to 2,000 square yards, in addition to commercial and institutional zones. The development will extend on both sides of the Zirakpur-Banur road, linking directly to the airport. The site spans multiple villages, including Bakarpur, Rurka, Safipur, Matran, Siaun, Manauli, Patton, Saini Majra, Chau Majra, Naraingarh, and Chhat.

Industry analysts say the Aerotropolis is likely to redefine Mohali’s urban landscape by combining residential, commercial, and institutional development in a single planned township. Its proximity to the airport has been highlighted as a significant advantage for both investors and future residents.

The government’s decision to revive the 2021 land pooling model has been cautiously welcomed by farmer groups, although some remain skeptical about implementation. Critics argue that landowners need greater clarity on timelines for plot allotment and infrastructure delivery.

Market experts believe that if executed as planned, Aerotropolis could attract significant investment into Mohali real estate, positioning the region alongside Gurgaon and Noida in terms of large-scale planned urban development. The project’s scale, however, means execution risks remain high, particularly around land acquisition, litigation, and timely infrastructure rollout.

For now, all eyes are on the outcome of the social impact assessment. Once completed, it will determine how swiftly the state can proceed with land acquisition and move the project closer to the construction stage. With tenders already floated and policy frameworks in place, the latest updates suggest Punjab’s Aerotropolis is inching closer to reality.