Maharashtra has waived a transfer fee equivalent to 25 per cent of a plot’s market value when land acquired for renewable energy projects is transferred from a parent company to its subsidiary. Revenue Minister Chandrashekhar Bawankule announced the decision on Monday, saying it would reduce the financial burden on companies and support investment in the state’s green energy sector.

The exemption covers projects involving solar, wind and other forms of renewable energy. The revenue department said the decision was taken on the directions of Chief Minister Devendra Fadnavis and followed a resolution adopted at the state cabinet meeting on August 18.

Under the Maharashtra Tenancy and Agricultural Lands Act, the transfer of land acquired for industrial use attracted a fee payable to the district collector. The charge was equivalent to 25 per cent of the land’s market value, calculated using ready reckoner rates. Renewable energy companies often move land into separate subsidiaries to secure bank loans or attract foreign investors, making the levy an additional project cost.

The government said removing the charge on such internal transfers would help companies manage project expenses and facilitate implementation. The exemption is conditional on the land being used exclusively for renewable energy development.

If the land is later 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 applicable interest, according to the revenue department. The conditions are intended to ensure that the concession remains limited to genuine renewable energy projects and is not used for other forms of development.