Maharashtra to waive stamp duty on internal land transfers for renewable energy projects
This means the State Renewable Energy and Energy Storage Policy-2025 to 2035-36 will include a 25% transfer duty exemption as per the provisions of the Maharashtra Family Administration and Agricultural Land Acts
On August 11, 2026, the Maharashtra Cabinet, led by Chief Minister Devendra Fadnavis, announced a significant move to boost renewable energy projects in the state. The decision includes a 25% reduction in land-transfer fees and full exemption from stamp duty for internal land transfers between group or special purpose vehicle (SPV) companies. This measure aims to streamline the process and reduce financial burdens that have been delaying such projects.
Previously, a transfer duty of 25% of the land's market value had to be paid to the District Collector by any group company or subsidiary. This new policy seeks to eliminate this financial hurdle, ensuring that the final use of the land is specifically for renewable energy development. If there is a discrepancy where the land is later used or sold for another purpose, the exemption will be revoked with interest.
The government also decided to waive stamp duty on internal land transfers between group or SPV companies, which often occurs when a parent company establishes an independent entity to execute renewable energy projects. This dual exemption aims to minimize the overall cost of production for renewable energy initiatives.
Furthermore, the Cabinet discussed revising the interest rate for delayed payments of compensation related to land acquisition, rehabilitation, and resettlement. The new rate will be one percentage point higher than the interest rate provided by the Reserve Bank to commercial banks. This adjustment follows the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act-2013, which mandates compensation for affected individuals during delays.
The decision comes amid ongoing issues where project-affected individuals have had to await years for compensation, as seen in the delayed payout for the CIDCO’s NAINA project. The government hopes these measures will expedite the compensation process and reduce the administrative burden.
Written by urgent.news from The Hindu's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
