Punjab Mandi Board Auctions Properties Amid Financial Crunch, Raises ₹60 Crore So Far. Punjab Mandi Board has initiated the process of auctioning its unused properties to garner revenue in the wake of a dire financial crisis with the non-disbursal of ₹7,200 crore Rural Development Fund by the Centre. The state’s mandis across the state have properties worth around 12,000 which include fuel station site, ATM site and built-up shops being put up for auction.
All income generated is put towards building and repairing rural infrastructure and repaying old loans that previous governments have taken. It has been six weeks since the auction process was initiated last month, and till date, it has managed to collect ₹60 crore. During this financial year, it wants to collect ₹250 crore in such auctions.
The decision to auction properties was taken last year with Chief Minister Bhagwant Mann giving his approval. In 2023 and 2024, the pressure of having to pay loan instalments peaked as it barely managed to make loan instalments raised by the previous Congress government to finance the farm debt waiver scheme. With no end to the RDF question in view, the board now turned to auctions as a means to sustain its operations and retain rural link roads, many of which have lain in disrepair for years. Punjab Mandi Board Chairman Harchand Singh Barsat said efforts were being made to ensure a steady income for the board. He said revenue was already being generated from Kisan Bhawan in Chandigarh and Kisan Haveli in Anandpur Sahib, where room tariffs have been marginally increased. Besides, the board has started leasing out commercial sites, including fuel station sites.
On Thursday, the board leased out 16 fuel station sites for an annual lease amount of ₹7.01 crore. It has identified 108 such sites for lease agreements of 19 years and 11 months, with 30 more sites expected to be leased by the end of March. These sites had not been auctioned since 2018.
Barsat also said that most of the loans taken by previous governments have been cleared, and only ₹500 crore in liabilities remain, which is expected to be paid off soon.