This article examines the implications of Maharashtra’s stamp duty waiver for renewable energy projects on public procurement.
Policy Change to Boost Renewable Energy Projects
On August 11, 2026, the Maharashtra Cabinet, led by Chief Minister Devendra Fadnavis, announced a significant policy change aimed at accelerating renewable energy projects in the state. The decision includes a full exemption from stamp duty on internal land transfers between group or special purpose vehicle (SPV) companies. This waiver is part of the State Renewable Energy and Energy Storage Policy for the period 2025 to 2035-36, which is designed to alleviate financial burdens that have historically delayed project implementation. Previously, companies were required to pay a 25% transfer duty based on the market value of the land, which was seen as a hindrance to timely project execution.
Impact on Project Costs and Execution
The removal of stamp duty is expected to significantly reduce the costs associated with land acquisition for renewable energy projects. Under the previous regulations, companies often faced double taxation on the same land when transferring it into an SPV for project execution. This financial burden not only increased project costs but also contributed to delays in development timelines. The government has stipulated that the land must ultimately be used for renewable energy purposes; any misuse of the exemption will result in the recovery of the transfer fee with interest. This measure aims to ensure that the benefits of the policy are directed towards genuine renewable energy initiatives.
Additional Measures for Land Acquisition Compensation
In conjunction with the stamp duty exemption, the Maharashtra government also revised the interest rates applicable to delayed land acquisition compensation. The new rate will be set one percentage point higher than the prevailing interest rate offered by the Reserve Bank to commercial banks. This adjustment is intended to provide fair compensation to affected individuals who have experienced delays in receiving payments for land acquired under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act of 2013. By addressing these delays, the government aims to enhance the overall efficiency of land acquisition processes, further supporting the growth of renewable energy projects.
IN NUMBERS
The Maharashtra government’s recent waiver of stamp duty for renewable energy land transfers represents a significant shift in public procurement policy, fostering a more competitive environment for renewable energy development.
Reported from thehindu.com, 2026-08-12. The Tender Wire is published by Otnox.
