Chandigarh, October 14 — The Punjab Cabinet on Monday approved a major policy revision to reduce the reserve price of government-owned properties worth around ₹8,000 crore that have remained unsold in repeated auctions due to inflated valuations. The decision, taken at a meeting chaired by Chief Minister Bhagwant Mann, aims to unlock long-stuck assets and boost state revenue.
Finance Minister Harpal Singh Cheema said the amendments to the e-auction policy would allow for re-evaluation of the reserve price, paving the way for renewed bidding interest. “We have decided to reassess the reserve price of these properties, which was very high. Because of that, no buyers came forward in previous auctions,” Cheema said after the meeting.
According to officials, the Cabinet move follows several failed attempts to sell prime state properties belonging to departments and agencies such as the Punjab State Power Corporation Limited, Mandi Board, municipal corporations, and the departments of irrigation, public works, local government, health, horticulture, housing, and transport.
Properties expected to go under the hammer once the policy changes are implemented include the Old Bus Stand land in Patiala; Power Department assets in Ludhiana and Patiala; Ladowal Seed Farm in Ludhiana; and prime land parcels opposite the Deputy Commissioner’s office and along Rani Jhansi Road in Ludhiana.
A senior minister, speaking on condition of anonymity, said last week that the government had little choice but to bring down the reserve price. “The rates were unrealistic. Leave aside finding buyers — bidders were not even attending the auctions,” the minister said.
Under the revised rules, three independent evaluators — empanelled with the Income Tax Department or nationalised banks — will determine the value of each property. Their assessment will remain valid for one year. “If half of the properties still remain unsold, their reserve price will be reduced by 10 per cent, followed by another 5 per cent if needed,” Cheema explained.
In another key decision, the Cabinet approved a plan to remove silt from the Beas and Sutlej rivers to prevent flooding and restore natural flow. Water Resources and Mining Minister Barinder Goyal said 85 sites had been identified for the de-silting operation, 28 of them along the Beas. “The exercise will help extract 190 crore cubic feet of silt, valued at around ₹840 crore,” he said.
Goyal noted that the Beas was declared a Ramsar site during the previous Congress government, which had barred mining or de-silting. “We will now seek permission from the Centre to allow this essential operation,” he said.
The Cabinet also approved amendments to the Punjab Minor Mineral Rules, 2013, introducing a fee on vehicles entering the state with processed or unprocessed minor minerals. The revenue will be used to develop and maintain interstate check-posts.
Other decisions taken during the meeting included:
- Purchase of six sniffer dogs from the BSF and CRPF to strengthen security inside jails.
- Land allotment to cooperative societies under the upcoming Group Housing Scheme–2025.
- Extension of up to five years for pending housing projects upon payment of ₹25,000 per acre per year.
- Flood relief hike to ₹10,000 per acre for 26–75% crop loss and ₹20,000 per acre for 76–100% loss.
- Compensation increase for partially damaged houses from ₹6,500 to ₹40,000 per unit.
With these approvals, the Mann government hopes to generate funds through property disposal, boost infrastructure, and address long-pending environmental and housing issues — a move seen as both fiscal and administrative cleanup.
