Maharashtra to waive stamp duty on internal land transfers for renewable energy projects

Maharashtra's state cabinet, led by Chief Minister Devendra Fadnavis, approved a policy change aimed at reducing the financial burden on renewable energy developers. Effective immediately, the state will offer a 25% reduction in land-transfer fees and fully exempt stamp duty on internal land transfers between group companies and special purpose vehicles (SPVs). This decision was made during a cabinet meeting held on Tuesday, August 11, 2026. The new measures are intended to accelerate the implementation of renewable energy projects across the state. Under the revised policy, companies developing renewable energy projects can now benefit from a 25% discount on transfer duties when transferring land internally between affiliated entities. Previously, such transfers required a 25% transfer duty based on the market value of the land, which added to the overall costs of these projects. The policy aligns with the Maharashtra Renewable Energy and Energy Storage Policy-2025 to 2035-36, which now includes provisions for this exemption under the Maharashtra Family Administration and Agricultural Land Acts. The full stamp duty exemption applies specifically to internal land transfers between group companies and SPVs. This measure addresses a key challenge faced by renewable energy firms, which often set up SPVs to manage individual projects. These SPVs typically acquire land from parent companies, resulting in double taxation, once when the parent company purchases the land and again when the SPV acquires it. By waiving stamp duty on internal transfers, the government aims to lower the overall cost of production for renewable energy projects. In addition to the tax relief, the cabinet also revised the interest rate for delayed land acquisition compensation. The new rate will be one percentage point above the rate at which the Reserve Bank of India provides loans to commercial banks. This adjustment ensures that affected individuals receive fair compensation for delays in receiving their share of funds. According to the Chief Minister's office, this change reflects the need to align the interest rate with current economic conditions while adhering to the legal framework established by the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act-2013. The policy change comes amid ongoing discussions regarding the allocation of resources for large-scale infrastructure projects. For example, the NAINA project under CIDCO has faced prolonged delays in compensating affected residents. The revised interest rate is expected to expedite the resolution of such cases, ensuring timely payments to those impacted by land acquisitions. The decision marks a significant step toward supporting the state's renewable energy goals. By reducing financial barriers, the government hopes to encourage more private investment in solar, wind, and storage technologies. The policy also underscores the importance of streamlining administrative processes to ensure that projects proceed without unnecessary delays. As the new policies come into effect, officials expect increased activity in the renewable sector. Developers are likely to see reduced upfront costs, allowing them to allocate more capital towards project execution. The government has emphasized that the exemptions are conditional on the land being used exclusively for renewable energy purposes. Any deviation from this requirement could result in the recovery of previously waived fees with applicable interest. With these changes, Maharashtra continues its efforts to position itself as a leader in sustainable energy development. The focus remains on balancing economic growth with environmental responsibility, ensuring that the benefits of renewable projects reach both the state and its citizens.