4 min readMohaliJan 16, 2026 11:18 AM IST
First published on: Jan 16, 2026 at 11:18 AM IST
Clearing the way for a major private investment, the Greater Mohali Area Development Authority (GMADA) has decided to develop a large Mixed Land Use (MLU) project on 30 acres of prime land adjoining Eco City-1 in New Chandigarh. The site was earlier earmarked for a truck terminal, but has now been re-planned as part of GMADA’s revised urban development strategy.
The authority has identified the land and put it up for e-auction to be developed through private sector participation. The reserve price for the project has been fixed at Rs 1,311.18 crore, underlining the site’s high economic and strategic value.
The area was originally proposed for a truck terminal, but with the rapid development of nearby residential sectors and Eco City-1, GMADA reconsidered the plan. “A truck terminal would have led to heavy vehicle movement, increased traffic congestion and higher pollution levels,” an official said. “Keeping this in mind, GMADA opted for a more balanced and well-planned development model.”
The Mixed Land Use project will allow a combination of residential, commercial, office, civic and allied activities, ensuring flexibility and sustainable utilisation of the land.
Officials said the initiative would play a key role in shaping New Chandigarh as a modern, well-organised and environmentally friendly urban centre. “Development of this 30-acre site adjacent to Eco City-1 will significantly strengthen New Chandigarh’s urban identity in the coming years,” a senior GMADA officer said.
Urban planners believe the move will not only attract large-scale investment but also support long-term, sustainable growth by aligning infrastructure development with the surrounding residential landscape.
In Sector 62, GMADA converts chunk sites into MLU to attract investment
In a significant policy shift, GMADA has decided to convert large chunk sites in Sector 62 (PUDA Bhawan area) into Mixed Land Use (MLU) sites to make them more attractive for investors and ensure optimal utilisation of prime land. GMADA aims to reposition Sector 62 as a more flexible, competitive and future-ready urban hub.
According to officials, GMADA’s earlier attempts to auction large sites exclusively for commercial purposes did not yield the desired response. “Experience showed that large, purely commercial sites failed to perform well in the market due to high reserve prices and better investment options available in nearby developed areas such as Aerocity and IT City,” an official said.
Under the new framework, GMADA plans to offer multiple sites as MLU plots, including one cluster of five plots measuring 27.77 acres, another of two plots spread across 12.92 acres, along with additional sites measuring 5.51 acres and 6.30 acres. These MLU sites will permit a wide range of activities, including commercial, residential, civic, cultural, office and allied uses.
“Purely commercial sites have limited flexibility, which increases costs and reduces competitiveness,” a senior GMADA officer said. “With mixed land use, the same land becomes more dynamic and viable, ensuring better returns and wider interest from investors.”
Sector 62 already has several malls and commercial complexes, leading to near saturation of conventional commercial space. Officials noted that while the cost of MLU and commercial sites remains the same, MLU development better safeguards GMADA’s financial interests by attracting diversified projects and sustained demand.
Urban development experts believe the move will not only enhance the appeal of Sector 62 but also provide fresh momentum to urban growth in Mohali and New Chandigarh. “This strategy is expected to accelerate investment and construction activity while maintaining a healthier balance between residential and commercial development,” experts said.
Farmers from eight villages protest outside the GMADA office on Thursday against the proposed acquisition of 3,553 acres for the Aerotropolis project. The agitation was temporarily lifted after officials scheduled a meeting with the Chief Administrator for March 19. (File) 
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