Mumbai: Maharashtra Revenue Minister Chandrashekhar Bawankule on Monday announced a complete waiver of the 25 per cent transfer fee levied when land acquired for renewable energy projects is transferred from a parent company to its subsidiary.
"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.
The decision was taken on the directions of Chief Minister Devendra Fadnavis and follows a resolution adopted at the state cabinet meeting on August 18 this year, according to a statement issued by the revenue department.
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Under the Maharashtra Tenancy and Agricultural Lands Act, a transfer fee equivalent to 25 per cent of the market value of land, calculated according to the ready reckoner rates, was payable to the district collector when land acquired for industrial use was transferred.
"Renewable energy companies often need to transfer land to separate subsidiaries to secure bank loans or attract foreign investors. Such transfers, though internal and involving no change in ownership, attracted the fee and increased project costs, potentially delaying the implementation of energy projects," the statement said.
The government has stipulated that the land must be used exclusively for the development of renewable energy projects to qualify for the exemption.
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If a company subsequently uses the land for residential, commercial or any other purpose, or sells it to a third party, the exemption will be cancelled immediately and the entire transfer fee will be recovered along with interest, it said.
The move is expected to facilitate investment in solar, wind and other renewable energy projects by easing the financial burden associated with internal land transfers, said the statement.