The Maharashtra Cabinet, chaired by Chief Minister Devendra Fadnavis, on Tuesday, 11 August approved a revision in the interest rate payable on delayed land acquisition compensation, pegging it at 1 percentage point above the prevailing repo rate of the Reserve Bank of India (RBI). The decision is aimed at better protecting the financial interests of project-affected landowners across the state.

Key Decision on Delayed Compensation

Under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, persons displaced by development projects are entitled to interest on delayed payments. However, the Cabinet observed a growing gap between the statutory interest rates and prevailing bank lending rates.

To address this, the Cabinet approved an amendment to Section 72 of the 2013 Act, aligning the compensation payout structure with current market dynamics. The revised rate — repo rate plus 1 percentage point — will apply in cases where land is taken into early possession before the final acquisition award is declared, a common practice in infrastructure and development projects.

Renewable Energy Projects Get Land Transfer Relief

In a separate but connected move to accelerate clean energy rollout, the Cabinet approved a 25% reduction in land transfer fees for properties acquired for renewable energy projects. Currently, transferring land among group companies or subsidiaries for such projects requires payment of a transfer fee to the District Collector equivalent to 25% of the land's market value as per the Ready Reckoner Rate — a burden the Cabinet acknowledged was causing project delays and financial strain.

The concession will be incorporated into the Maharashtra Renewable Energy and Energy Storage Policy (2025–2036). A strict condition accompanies the relief: land must be used exclusively for renewable energy development. Any subsequent diversion or sale for non-renewable purposes will trigger recovery of the waived amount with interest.

Additionally, the Cabinet granted a complete stamp duty exemption on intra-group land transfers for renewable energy projects. While parent companies pay standard stamp duty on initial land purchases, subsequent transfers to group entities or Special Purpose Vehicles (SPVs) will now attract zero stamp duty, reducing capital costs and aiming to fast-track project commissioning.

Agriculture Commissionerate to Get Four New Senior Posts

The Cabinet also approved the creation of four senior administrative positions within the Agriculture Commissionerate to strengthen digital governance and engineering oversight. Acting on directives from the Union Ministry of Agriculture, Maharashtra is establishing a dedicated Directorate of Agricultural Engineering and a Directorate of AgriStack.

The High-Power Secretary Committee recommended four posts: Director of Agriculture, Additional Director of Agriculture, Joint Director (Statistics), and Joint Director (Information Technology).

Sugar Factory Loan and Other Approvals

The Cabinet cleared a proposal allowing the Sri Nilkantheswar Farmers Co-operative Sugar Factory in Killari (Ausa taluka, Latur district) to secure a loan of ₹18.09 crore from the National Cooperative Development Corporation (NCDC). The factory had approached the Sugar Commissionerate in Pune for capital expenditure and working capital support.

The Cabinet approved the proposal as a one-time special dispensation, explicitly clarifying that the decision will not set a precedent for other sugar mills seeking similar support.

With Tuesday's decisions, the Fadnavis Cabinet has signalled a dual focus on landowner rights and clean energy infrastructure — two areas that will define the pace of Maharashtra's development pipeline in the years ahead.