The Maharashtra Cabinet,led by Chief Minister Devendra Fadnavis, has approved significant financial incentives aimed at bolstering renewable energy initiatives within the state. On August 11,2026,the Cabinet announced a 25% reduction in land-transfer fees and complete waiver of stamp duty for internal land transfers between group companies or special purpose vehicles (SPVs) involved in renewable energy projects.
This decision is part of the broader State Renewable Energy and Energy Storage Policy for the period from 2025 to 2035-36 . Previously,companies had to pay a transfer duty amounting to 25% of land's market value to the District Collector whenever land was transferred within a corporate group. This financial burden has been cited as a significant delay factor for energy projects .
“This has been putting a financial burden on the energy projects,delaying them,” the Chief Minister's Office (CMO) stated. exemption is contingent upon the land being utilized specifically for renewable energy development . Should a company misuse the exemption by selling or using the land for other purposes,the government will reclaim transfer fee with interest.
In addition to the stamp duty exemption, the Cabinet also revised interest rate applicable to delayed compensation for land acquisition, rehabilitation, and resettlement. The new rate will be set one percentage point higher than the interest rate that the Reserve Bank of India charges commercial banks. This change aims to address the prolonged delays that project-affected individuals have faced in receiving compensation.
Under Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act-2013,affected individuals are entitled to interest on compensation amounts due to delays. The CMO noted that existing interest rate had not kept pace with current banking rates, prompting the amendment to Section 72 of the Act.
Many individuals impacted by land acquisition projects have waited years for their compensation. For example, compensation related to the CIDCO’s NAINA project remains unresolved. The government's recent measures are expected to alleviate some of these financial strains and expedite the development of renewable energy infrastructure.
By eliminating the stamp duty on internal transfers,the Maharashtra government aims to streamline process for renewable energy companies. Typically,these companies establish SPVs to manage specific projects, necessitating the transfer of land into these entities . previous requirement to pay stamp duty on these transfers effectively taxed the same land twice, complicating project financing.
With these new policies, Maharashtra is positioning itself as a more attractive destination for renewable energy investments . state has been actively working to enhance its energy portfolio,and these incentives are seen as a crucial step in achieving its renewable energy targets.
