Daijiworld Media Network - Mumbai

Mumbai, Aug 12: The Maharashtra Cabinet, chaired by Chief Minister Devendra Fadnavis, has approved major concessions on land transfers aimed at accelerating renewable energy projects in the state, including a complete exemption from stamp duty on intra-group transfers and a 25 per cent concession on land transfer fees.

The decisions were taken at the Cabinet meeting on Tuesday, August 11, as part of efforts to reduce project costs and speed up the development of renewable energy and energy-storage projects in Maharashtra. PTI and other reports confirmed the Cabinet's approval of the concessions.

Under the decision, land transfer fees for properties being transferred for renewable energy projects will be reduced by 25 per cent. The concession will be incorporated into the Maharashtra Renewable Energy and Energy Storage Policy 2025-26 to 2035-36, which is already listed by the state's Energy Department as the governing policy document.

The measure is particularly aimed at transfers of land between companies belonging to the same group, including subsidiaries and special purpose vehicles (SPVs) created to execute individual renewable energy projects.

At present, such internal transfers can attract a substantial transfer fee payable to the District Collector, calculated at 25 per cent of the land's market value based on the Ready Reckoner rate. The Cabinet decision provides a 25 per cent reduction in this transfer fee, according to reports on the decision.

The government has also approved a 100 per cent stamp duty exemption for subsequent intra-group transfers of land meant for renewable energy projects. This means that while stamp duty would continue to apply when a parent company initially purchases land, a subsequent transfer of that land to another group entity or an SPV for the renewable energy project would attract zero stamp duty.

The concession is subject to an important condition. The land benefiting from the concession must be used exclusively for renewable energy development. If the land is subsequently diverted to a non-renewable purpose or sold for such a purpose, the government can recover the amount of the concession along with interest.

The move is intended to address a recurring cost and procedural burden in renewable energy projects, where land acquired by a corporate group may subsequently need to be transferred to a dedicated project company or SPV. Removing stamp duty at that stage is expected to lower transaction costs and make project structuring easier.

The concessions form part of Maharashtra's broader renewable-energy push under its Renewable Energy and Energy Storage Policy for 2025-26 to 2035-36. The policy is designed to support renewable generation and energy-storage capacity in the state, while the Energy Department has made the policy available through its official documents portal.