Which was settled between 1902 and 1906. The colony was situated in the Shahpur district and had its headquarters in the newly founded town of Sargodha. Initially the colony was intended to serve the same aims as the other colonies of fostering agrarian excellence and relieving population strains. However, the Report of the Horse and Mule breeding Commission of 1900-01 recommended the colonists be allowed to breed animals for the army. The government of India subsequently instructed the Punjab government to impose these conditions on the new colony. Instead of selecting skilled agriculturists, the government were to now seek out skilled horse-breeders. Under the new scheme, the horse-breeding tenure was imposed on all peasant grants. The size of peasant landholdings was increased, which resulted in absentee landlords and a large sub-tenant workforce.