Maharashtra Government Scraps 25% Land Transfer Fee for Renewable Energy Projects

The Maharashtra government has scrapped the 25% land transfer fee for renewable energy companies transferring land from a parent company to its subsidiary. Revenue Minister Chandrashekhar Bawankule announced the decision on Monday, according to The Economic Times news report. 

The fee was charged even when land was transferred between companies under the same ownership. The government said this increased project costs, particularly for companies setting up separate subsidiaries to arrange funding for renewable energy projects. 

Fee Was Based on Market Value 

Under the Maharashtra Tenancy and Agricultural Lands Act, land acquired for industrial use attracted a transfer fee of 25% of its market value when transferred. The amount was calculated using ready reckoner rates and paid to the district collector. 

Renewable energy companies often transfer land to subsidiaries to secure bank loans or bring in foreign investors. These transactions attracted the fee even when there was no change in the ownership of the land. 

Cabinet Decision and Restrictions 

The revenue department said the waiver follows a resolution passed at the state cabinet meeting on 18 August 2026. The decision was taken on the directions of Chief Minister Devendra Fadnavis. 

The exemption is subject to a condition that the land must be used only for renewable energy projects. If the land is later used for residential, commercial, or any other purpose, the waiver will be cancelled. The same rule applies if the land is sold to a third party. 

In these cases, the government will recover the full transfer fee along with interest. 

Impact on Renewable Energy Projects 

The removal of the fee reduces the cost of transferring land between a parent company and its subsidiary. Such transfers are often required when companies arrange loans or bring in investors for individual projects. 

The report suggests that the government expects this change to support projects in solar, wind, and other renewable energy segments across Maharashtra. However, companies will have to comply with the land-use conditions to retain the exemption. 

Read More: India Extends Anti-Dumping Duty on Chinese Titanium Dioxide for 5 Years! 

Conclusion 

The waiver removes the 25% transfer fee for eligible renewable energy land transfers. The fee, along with interest, will still be recoverable if companies breach the conditions attached to the exemption. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.