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Maharashtra Cabinet Approves 25 Percent Land Transfer Fee Exemption for Renewable Energy Projects
Maharashtra Cabinet has approved a 25 percent exemption on land transfer fees and a complete stamp duty waiver on subsequent transfers for land used in renewable energy projects under the state’s Renewable Energy and Energy Storage Policy 2025-36.
August 12, 2026. By Mrinmoy Dey
The Maharashtra Cabinet, chaired by Chief Minister Devendra Fadnavis, has approved a 25 percent exemption on land transfer fees for land purchased for renewable energy projects to reduce project costs and accelerate renewable energy development in the state.
The decision will be incorporated into the Maharashtra Renewable Energy and Energy Storage Policy 2025-36. Under the existing provisions, when land purchased for renewable energy projects is transferred within a group company or to a subsidiary, a transfer fee equivalent to 25 percent of the land’s market value, based on the prevailing Annual Statement of Rates, is required to be deposited with the District Collector.
According to the state government, the fee was creating an additional financial burden for renewable energy projects and contributing to delays in project implementation. The exemption is therefore intended to reduce upfront costs and facilitate faster development of renewable energy projects.
The exemption will be applicable subject to the condition that the final use of the land remains for renewable energy development. If a company avails the exemption through an internal transfer but subsequently uses or sells the land for another purpose, the applicable transfer duty will be recovered along with interest.
The Cabinet has also decided that while the stamp duty applicable to the initial purchase of land for renewable energy projects will be paid by the main company, the stamp duty on subsequent transfer of the land to a group company or a special purpose vehicle (SPV) formed for the project will be completely waived.
The state government said the measure is aimed at reducing the additional financial burden on renewable energy companies and expediting project execution. The decision will form part of the Maharashtra Renewable Energy and Energy Storage Policy 2025-36.
The decision will be incorporated into the Maharashtra Renewable Energy and Energy Storage Policy 2025-36. Under the existing provisions, when land purchased for renewable energy projects is transferred within a group company or to a subsidiary, a transfer fee equivalent to 25 percent of the land’s market value, based on the prevailing Annual Statement of Rates, is required to be deposited with the District Collector.
According to the state government, the fee was creating an additional financial burden for renewable energy projects and contributing to delays in project implementation. The exemption is therefore intended to reduce upfront costs and facilitate faster development of renewable energy projects.
The exemption will be applicable subject to the condition that the final use of the land remains for renewable energy development. If a company avails the exemption through an internal transfer but subsequently uses or sells the land for another purpose, the applicable transfer duty will be recovered along with interest.
The Cabinet has also decided that while the stamp duty applicable to the initial purchase of land for renewable energy projects will be paid by the main company, the stamp duty on subsequent transfer of the land to a group company or a special purpose vehicle (SPV) formed for the project will be completely waived.
The state government said the measure is aimed at reducing the additional financial burden on renewable energy companies and expediting project execution. The decision will form part of the Maharashtra Renewable Energy and Energy Storage Policy 2025-36.
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