Maharashtra Cabinet, chaired by Chief Minister Devendra Fadnavis, on Tuesday (August 11, 2026) decided to grant a 25% land-transfer fee discount and a full stamp duty exemption on internal land transfers between group/ special purpose vehicle (SPV) companies with the aim of accelerating renewable energy projects in the State.This means the State Renewable Energy and Energy Storage Policy-2025 to 2035-36 will include a 25% transfer duty exemption as per the provisions of the Maharashtra Family Administration and Agricultural Land Acts. Earlier, a group company or a subsidiary had to deposit a transfer duty of 25% of the market value of the land with the District Collector. “This has been putting a financial burden on the energy projects, delaying them. While granting this exemption, it is necessary that the final use of the land is for renewable energy development. If a company obtains a fee exemption under the name of internal transfer and later uses or sells the land for any other purpose, the transfer fee amount will be recovered with interest,” stated in a statement released from the CMO. Another decision to escalate renewable energy projects in the State is a full stamp duty exemption on internal land transfers between group/SPV companies. This means the stamp duty will be waived. When a renewable energy company buys land, it pays stamp duty on that purchase. Usually, for renewable projects, the parent company sets up an independent entity like a Special Purpose Vehicle (SPV) to execute the project. The land for the project is then transferred into this SPV. The internal transfer would also attract stamp duty, taxing the same land twice. The government move aims to reduce the cost of production.Revision in interest rate for delayed land acquisition compensationDuring the Cabinet meeting, the government also decided to revise the interest rate to be paid in case of delay in payment of compensation for land acquisition, rehabilitation and resettlement. The interest rate will be one percentage point higher than the interest rate at which the Reserve Bank provides loans to commercial banks.“Since the land is handed over to the government before the compensation, as per the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act-2013, interest is paid to the affected person on the amount of compensation due to delay,” stated the CMO. According to the CMO, since there is a difference between this interest rate and the prevailing interest rate on bank loans, approval has been given to amend Section 72 of the Act. In the last few years, the project-affected people had to wait years together to receive compensation against the land acquired. For instance, the compensation under CIDCO’s NAINA project is still pending. Published - August 12, 2026 10:39 am IST