Chandigarh October 14, 2025 : In a historic decision, the Punjab Cabinet, led by Chief Minister Bhagwant Singh Mann, has approved an increase in the compensation amount for crop damage to 20,000 rupees per acre.
This decision was taken during a Cabinet meeting held today at the Chief Minister’s Office under his leadership. A spokesperson from the Chief Minister’s Office stated that to provide adequate relief to people affected by natural calamities that caused crop and property damage, the Cabinet has given ex-post facto approval to the revised compensation rates from the state budget. Punjab faced severe floods this year, prompting the government to enhance the relief amount.
Under this decision, farmers will receive 10,000 rupees per acre for crop loss between 26% and 75%, and 20,000 rupees per acre for crop loss between 76% and 100%. Additionally, 40,000 rupees will be provided per house for partial damage, whereas earlier, the compensation was only 6,500 rupees per acre. The state government will bear the additional compensation cost from its own treasury, as the Central Government will not increase the amount given under the SDRF.
Approval for amendment in Punjab Minor Minerals Rules, 2013
To streamline the functioning of inter-state check posts, the Cabinet approved amendments to the Punjab Minor Minerals Rules, 2013. This will allow the state to levy a fee on vehicles carrying processed or unprocessed minor minerals when entering Punjab. The move will help cover operational costs of check posts and strengthen the system for better maintenance and efficiency.
Approval for amendment in the policy to determine the reserve price of plots
To simplify and make the process of determining reserve prices for plots under development authorities more efficient, the Cabinet approved amendments to the policy. As per the revised e-auction policy, the reserve price of a site will now be determined based on valuations from three independent valuers listed with nationalized banks. Once set, the reserve price will remain valid for the calendar year.
Approval for land allotment policy to cooperative societies
The Cabinet also approved a policy to allot land to cooperative housing societies for the construction of multi-storey flats under the Group Housing Scheme-2025. The objective of this policy is to ensure affordable and planned housing in Punjab’s urban areas by facilitating cooperative societies. This decision provides a transparent, fair, and structured framework for land allotment, ensuring timely development in line with the state’s urban planning goals.
Approval for policy to complete mega housing projects
To address challenges faced by promoters and provide relief to the public, the Cabinet approved a policy for completing mega housing projects under various development authorities. Promoters will be allowed a one-time extension of up to five years beyond December 31, 2025, upon request, at a rate of 25,000 rupees per acre per year. The payment for the extension must be made in advance, and no further extensions will be permitted afterward.
Approval to increase remuneration for OSDs (Litigation) in various departments
The Cabinet approved an increase in the fixed remuneration for Officers on Special Duty (Litigation) working in different departments. There are 13 temporary posts of OSD (Litigation), and in 2020 their retainership fee was raised from 50,000 to 60,000 rupees. Now, their fixed salary/retainer fee has been increased by another 10,000 rupees.
Ex-post facto approval for constitution of Cabinet Sub-Committee
The Cabinet also gave ex-post facto approval for the formation of a sub-committee to oversee the transition of rolling mills in Mandi Gobindgarh and Khanna regions from coal to PNG (Piped Natural Gas).
Approval to implement Telecommunication Rules
The Cabinet approved the implementation of the Telecommunication (Right of Way) Rules, 2024, in the state.
Approval to strengthen security measures in jails
To curb criminal activities and drug trafficking, enhance visitor screening, and strengthen overall security arrangements in jails, the Cabinet granted exemption under Section 63(1) of the Punjab Transparency in Public Procurement Act, 2019, for the purchase of sniffer dogs. Six sniffer dogs will be procured from BSF/CRPF to improve jail security and assist in detecting criminal activities within prisons. This step aims to enhance vigilance and ensure better safety in jails.
Summary:
In a landmark move, CM Bhagwant Mann’s Cabinet approved increasing compensation for farmers to ₹20,000 per acre for crop damage caused by natural calamities.