Mumbai: Maharashtra has waived the transfer fee equivalent to 25 percent of land’s market value when land acquired for renewable energy projects is transferred from a parent company to its subsidiary, Revenue Minister Chandrashekhar Bawankule announced on Monday.
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The exemption aims to lower project costs and facilitate investment in solar, wind and other renewable energy projects.
"The decision will eliminate the additional financial burden on companies, help save project costs and provide greater impetus to large investments in the green energy sector in Maharashtra," Bawankule said.
According to the revenue department, the decision was taken on Chief Minister Devendra Fadnavis’s directions and follows a resolution adopted at the state cabinet meeting on August 18.
Under the Maharashtra Tenancy and Agricultural Lands Act, transfers of land acquired for industrial use attracted a fee payable to the district collector equivalent to 25 percent of its market value, calculated using ready reckoner rates.
The department said renewable energy companies often transfer land to separate subsidiaries to secure bank loans or attract foreign investors. The fee on such internal transfers added to project costs and could delay implementation.
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The exemption is conditional on the land being used exclusively for renewable energy development.
If the land is subsequently used for residential, commercial or any other purpose, or sold to a third party, the exemption will be cancelled immediately. The entire transfer fee will then be recovered along with interest, the department said.
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