Maharashtra Eliminates 25% Land Transfer Fee for Green Energy Projects
The Maharashtra government has waived the 25% land transfer fee for renewable energy projects to boost investment in the sector.
Complete waiver of 25% transfer fee for renewable energy land transfers.
Decision aims to reduce financial burdens on companies and expedite project implementation.
Land must be used exclusively for renewable energy to qualify for the exemption.
In a significant move to promote renewable energy investments, the Maharashtra government has announced a complete waiver of the 25% land transfer fee applicable when land is transferred from a parent company to its subsidiary for renewable energy projects. This decision, revealed by Minister Chandrashekhar Bawankule, is expected to alleviate financial pressures on companies and encourage larger investments in the green energy sector.
The waiver follows directives from Chief Minister Devendra Fadnavis and is rooted in a resolution passed during a state cabinet meeting held on August 18, 2026. Under the existing Maharashtra Tenancy and Agricultural Lands Act, a transfer fee equivalent to 25% of the land's market value, as determined by ready reckoner rates, was required when land designated for industrial use was transferred. This fee often posed a barrier for renewable energy firms needing to transfer land to subsidiaries to secure financing or attract foreign investments.
Bawankule emphasized that the decision is aimed at reducing project costs and expediting the implementation of energy projects. The government has clarified that to qualify for this exemption, the land must be utilized solely for renewable energy development. Any deviation from this purpose, such as using the land for residential or commercial projects, will result in the immediate cancellation of the exemption, along with the recovery of the full transfer fee plus interest.
This policy shift is anticipated to facilitate investments in various renewable energy initiatives, including solar and wind projects, by removing the financial burden associated with internal land transfers. The government hopes this will lead to a more robust green energy sector in Maharashtra, aligning with broader environmental goals.
Looking ahead, stakeholders in the renewable energy sector are encouraged to leverage this new policy to enhance project viability. The government plans to monitor compliance closely to ensure that the land is used for its intended purpose, thereby maximizing the benefits of this initiative for sustainable energy development in the state.
