Estimated reading time: 4 minutes

The Greater Mohali Area Development Authority has awarded a ₹509-crore tender to a Ludhiana-based consortium, CEL-JSPPV, to begin development of Aerotropolis, its seventh independent township. The project, spread across 5,500 acres near Shaheed Bhagat Singh International Airport, marks a significant step in a plan that has been on hold for nearly eight years.

According to GMADA officials, the two-year contract covers internal roads, sewerage systems, storm water lines, and underground electrical infrastructure. The township has received environmental clearance, allowing work on Blocks B, C, and D to begin immediately. Block A remains stalled due to litigation arising from the Guava Orchard Scam, a multi-crore fraud uncovered in 2023.

The scam involved nearly 100 individuals, including more than a dozen officials, who were accused of manipulating land records to falsely claim guava orchards for higher compensation during land acquisition. Investigators later determined that over 90% of the land was cultivated with wheat and paddy. The Punjab Vigilance Bureau registered an FIR in May 2023, delaying the first phase of the Aerotropolis rollout.

Despite the setback, GMADA has pushed ahead with the project, citing demand for organized housing near Chandigarh and the international airport. In its initial phase, 927 acres across three blocks will be developed out of the 1,653 acres earmarked. The full township, when completed, will include around 8,600 residential plots ranging from 100 to 2,000 square yards, alongside dedicated commercial zones.

Officials confirmed that landowners who chose the state’s land pooling policy will receive developed plots instead of cash compensation. The scheme provides 1,000 square yards of residential and 200 square yards of commercial land for every acre acquired, excluding parking. The remaining plots will be offered to the general public through GMADA’s allotment process.

The Aerotropolis site spans multiple villages including Bakarpur, Rurka, Safipur, Matran, Siaun, Manauli, Patton, Saini Majra, Chau Majra, Naraingarh, and Chhat. Its location, on both sides of the Zirakpur-Banur road, is expected to enhance connectivity with major industrial hubs and the expanding tricity region. Officials say its proximity to the airport could make it a key node for business travel and logistics.

Chief minister Bhagwant Mann approved the township in June 2022 and, two years later, directed GMADA to accelerate work amid rising demand for urban land. Real estate analysts note that Aerotropolis is positioned as an extension of Aerocity, another large-scale project that saw considerable buyer interest from professionals, NRIs, and investors over the past decade.

Developers and brokers tracking the Mohali market believe Aerotropolis could influence property prices in adjoining sectors by improving infrastructure and pushing demand toward peripheral villages. With Chandigarh land largely saturated and prices running high, Mohali has become the natural outlet for new residential and commercial growth.

However, concerns remain about execution timelines. Large township projects in Punjab have previously faced delays due to legal disputes, funding challenges, and political changes. GMADA’s commitment to completing essential development works before plot allotments is seen by many as an attempt to build credibility. Officials have insisted that allotments will not be rolled out until core infrastructure is in place.

The tender award comes at a time when Punjab’s property market has been showing signs of renewed activity. NRI interest has picked up after pandemic disruptions, and domestic buyers are increasingly looking at plotted developments as safer investments compared to under-construction high-rises. Industry observers say Aerotropolis, with its mix of residential and commercial land, could be well placed to capture this demand if deadlines are met.

Urban planners argue that the success of Aerotropolis will depend on how well it integrates with existing city infrastructure. Its location on the Zirakpur-Banur stretch gives it an advantage, but traffic management, public transport links, and sustainable water supply will remain long-term challenges. Critics warn that without coordinated planning, large new townships risk adding pressure to already strained civic services.

Despite the caveats, the ₹509-crore tender signals that GMADA intends to move decisively. The authority has made it clear that Blocks B, C, and D will set the tone for phased development, while Block A will only proceed once legal hurdles are resolved. For potential buyers, investors, and landowners, the next two years will reveal whether Aerotropolis becomes a model extension of Mohali’s urban grid or another project mired in delays.