Chandigarh Sector-39 New Grain Market Project Gets Fresh Push, Construction Likely Soon After Environmental Clearance
Chandigarh: The long-awaited Sector-39 new grain market project in Chandigarh is finally moving forward, with environmental clearance expected this month. Once the approval is received, the administration will begin the process of preparing construction tenders for the development of the modern market complex.
The administration has already approved the Detailed Project Report (DPR) for the project, which has also received clearance from the Engineering Department. The estimated cost of the project is around ₹200 crore.
Officials said that the process of shifting the existing grain market from Sector-26 to Sector-39 is expected to begin by the end of this year.
Revenue From Plot Auctions to Fund Construction
The Agriculture Department is planning to use the revenue generated through plot auctions for the construction of the new mandi. The objective is to avoid taking separate loans for the project.
Weekly review meetings are being conducted under the chairmanship of Agriculture Department Secretary D. Karthikeyan to monitor the progress of the project. Officials have been directed to complete the work on a priority basis.
75 Acres of Land Allocated for New Mandi
The new market will be developed on around 75 acres of land in Sector-39. The land was acquired by the UT Administration in 1990 and later allotted to the Market Board for just ₹3 crore.
The total estimated project cost is around ₹185 crore, including:
Around ₹13.50 crore for the State Agricultural Marketing Board office building
Around ₹9.60 crore for the Market Committee office building
The project also includes plans to construct two cold storage facilities to improve storage infrastructure for farmers and traders.
Construction Cost Cannot Be Reduced Further
The DPR of the project was prepared by NEBCon company. The Agriculture Department had requested the company to explore possibilities of reducing construction costs, but after a detailed assessment, the company stated that further reduction was not feasible.
The project cost has increased over the years due to delays. In March 2019, the estimated cost was ₹155.79 crore, which increased by nearly 24% by March 2022.
Second Phase of Plot Auction Soon
The Chandigarh administration has already completed the auction of 12 plots under the first phase. The second phase of auction will begin soon.
Officials have planned to auction a total of 92 plots. Traders and buyers from other states will also be allowed to participate, and no special preference will be given to existing commission agents.
Due to revised collector rates, the reserve price of showroom plots has increased from ₹3.70 crore to ₹5.40 crore.
Long History of Delays
The Sector-39 mandi project has faced several delays over the past three decades:
1990: UT Administration acquired around 78 acres of land in Sector-39.
2002: Land identified for the grain market project.
2014: Construction work started.
2015: Work stopped due to shortage of funds.
August 2015: Punjab and Haryana High Court directed the administration to make the mandi operational.
August 2023: Presence of the Kajauli water supply pipeline under the site was discovered.
September 2024: Decision taken to provide green cover around the pipeline area.
January 2025: UT Administrator approved auction of 46 shops in the first phase.
March 2025: High Court dismissed traders’ petition.
December 2025: Supreme Court dismissed the Special Leave Petition (SLP).
With environmental approval expected soon, the Sector-39 mandi project is now entering a crucial stage. The administration hopes the new market will provide modern facilities to farmers, traders and commission agents while reducing pressure on the existing Sector-26 market.
