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Chandigarh: In a move that has triggered fresh political and administrative debate, the Punjab Government, after scrapping its land pooling policy, is now looking to leverage the massive ₹20,000-crore asset base of the Greater Mohali Area Development Authority (GMADA) to raise loans for funding key welfare schemes.
According to senior officials, the state Housing and Urban Development Department has been tasked with preparing a detailed inventory of GMADA’s residential, commercial, and industrial properties in Mohali that can be used as collateral or put up for auction. The decision was discussed in a recent high-level meeting chaired by Chief Secretary KAP Sinha.
GMADA: The Financial Lifeline Amid Struggling Authorities
Punjab has eight housing development authorities, but six of them — Amritsar, Bathinda, Patiala, Jalandhar, Sri Anandpur Sahib (Urban), and Dera Baba Nanak — are reportedly struggling even to meet their routine administrative expenses due to a lack of saleable land and assets. Only GMADA and the Greater Ludhiana Area Development Authority (GLADA) are considered financially sound.
Currently, GMADA already has a loan burden of nearly ₹5,000 crore from various financial institutions. Despite this, sources say a portion of its property inventory could be mortgaged to raise additional funds, particularly to support high-cost welfare measures like the government’s flagship scheme of providing ₹1,100 per month to all women above 18 years of age.
Officials Defend the Plan, Cite Precedents
Defending the proposal, government officials argued that pledging public assets for loans is not unprecedented. Previous regimes, including the SAD-BJP government, had mortgaged state properties to raise resources. At one point, the state even pledged its future income streams to secure loans. In 2015–16, the then government had transferred properties to PUDA for auction under the “optimum utilisation of vacant government land” scheme, raising ₹2,000 crore from banks.
PSIEC Employees’ Unions See Threat to Financial Stability
Meanwhile, unrest is brewing in other departments over the government’s reported decision to tap into institutional reserves. Sources indicate that various state departments, including the Industries Department, have been directed to deposit a collective ₹1,441.49 crore into the state treasury.
The Punjab Small Industries and Export Corporation (PSIEC) Mulazam Union, affiliated with the Punjab Subordinate Service Federation, has strongly opposed reports that ₹500 crore could be withdrawn from the corporation’s financial reserves to Punjab government fund. On Tuesday, PSIEC employees observed a pen-down strike at the Industries Department’s head office in Chandigarh.
“This move will cripple the financial health of the corporation and directly threaten the livelihood of nearly 700 families dependent on PSIEC because the corporation may face severe funds crunch in disbursing salaries to its employees. ” said Ravinder Singh Randhawa, chairman of the union. A scheduled meeting of the PSIEC Board of Directors to discuss the issue was postponed amid the protests.
Political & Fiscal Implications
While the government insists this is a strategic financial step to keep welfare commitments on track, critics fear that mortgaging the last remaining high-value public assets could compromise Punjab’s long-term fiscal stability. Political analysts believe the issue could become a flashpoint ahead of the next budget session, with the Opposition likely to accuse the government of asset stripping for short-term political gains.
