Exemptions from Non-Agricultural Use Certificate and Non-Agricultural Tax for Solar and Wind Energy Power Generation Projects in Maharashtra
INTRODUCTION
The Government of Maharashtra issued a new circular on August 7, 2025 (“August Circular”), introducing important clarifications regarding exemptions from obtaining non-agricultural use certificates (sanad) and payment of non-agricultural tax for solar and wind power projects. In light of this, we have undertaken a comparative analysis of this August Circular in conjunction with the earlier circular dated January 29, 2025 (“January Circular”). The objective of this comparative analysis is to emphasize the similarities, differences, and sectoral focus of the two circulars and to aid stakeholders in understanding the exemptions in respect of land use for industrial projects and power generation projects in Maharashtra.
1. SUBJECT MATTER
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Circulars |
January Circular i.e. Government Circular dated January 29, 2025 bearing no. NAP-2024/P.No.180/J-1A issued by Government of Maharashtra, Revenue and Forest Department |
August Circular i.e. Government Circular dated August 7, 2025 bearing no. MISC-2025/Pr.Kr.66/J-01A issued by Government of Maharashtra, Revenue and Forest Department |
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Background |
As per Section 42 of Maharashtra Land Revenue Code, 1966 (“MLRC”), no agricultural land shall be used for non-agricultural purpose without the permission of the Collector. However, Sections 42 (A), (B), (C), and (D), and Section 44-A of MLRC, provides exemptions regarding the requirements for obtaining permission to use agricultural land for certain non-agriculture use (for instance, bonafide industrial use). Despite the exemptions, landowners were required to obtain a deemed non-agricultural use certificate as per Sections 42 (A), (B), (C), and (D), and Section 44-A of MLRC (as applicable) (“NA Certificate/ Sanad”). However, the procedure and time necessary to obtain a Sanad was almost identical to seeking formal permission for non-agricultural use. Accordingly, the Government, in its January Circular clarified that industrial units are not required to obtain Sanad/NA certificates in order to commence non-agricultural use for industrial projects. |
The August Circular provides the following exemptions specifically to solar and wind energy power generation projects: |
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Eligible Projects |
Industrial projects intending to use agricultural land for non-agricultural purposes in accordance with Sections 42 (A), (B), (C), and (D), and 44-A of MLRC. |
Solar and wind power generation projects (established under Mukhyamantri Saur Krishi Vahini Yojana, Non-Conventional Energy Generation Policy, 2020, and Maharashtra Green Hydrogen Policy-2023). |
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Legal Background |
The directions for exemptions provided in the January Circular shall remain in force till the completion of the process of amending Sections 42 (A), (B), (C), and (D), and 44-A of MLRC. |
Same as January Circular. |
2. PROCEDURAL DIRECTIONS AND COMPLIANCE
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Circulars |
January Circular |
August Circular |
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Documentation Required |
An industrial unit must submit its development permission or approved building plans from the planning authority to the Village Revenue Officer. |
Same as January Circular. |
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Action Required by Authorities |
Village Revenue Officer must update the record of right to reflect the change in land use upon receiving relevant documents. |
Same as January Circular. |
The August Circular appears to be a continuation of January Circular. The August Circular explicitly provides for the exemption from the payment of non-agricultural tax in addition to the NA Certificate exemption as provided under the January Circular, specifically for solar and wind power projects established under certain power generation related government schemes as specified above.