Maharashtra Government to Streamline Land Acquisition for Industries
The Maharashtra government has announced a significant move to streamline the process of land acquisition for industrial purposes by eliminating the need for non-agricultural (NA) clearance. This decision is part of the state’s ongoing initiative to improve the Ease of Doing Business and foster a more conducive environment for investment.
The new change, which will amend the Maharashtra Land Revenue Code, aims to simplify bureaucratic procedures that have long hindered the growth of industries in the state. Currently, industrial landowners must obtain deemed non-agricultural status before using land for industrial activities. This step has often delayed business operations and discouraged potential investors. However, the government found that the time required for obtaining NA status was comparable to the time it takes to acquire development or construction approval from the planning authority. As a result, the government decided to remove this additional bureaucratic step entirely. Revenue Minister Chandrashekhar Bawankule, who unveiled the amendment, explained that the new policy would significantly enhance the ease with which businesses can acquire and utilise land. “This is a major step towards eliminating bureaucratic obstacles and encouraging investment in Maharashtra,” Bawankule remarked. He added that the government’s primary objective is to remove unnecessary hurdles for businesses and create an environment that fosters growth and job creation.
Once the amendment is officially passed, industrial landowners will no longer need to secure non-agricultural status before using land for industrial purposes. Instead, they will only need to obtain permission from the relevant planning authority and register the approval with the local revenue officer, known as ‘talathi.’ This change is expected to cut down on delays and administrative burdens that have traditionally plagued industrial projects in Maharashtra. The policy overhaul is a crucial part of Maharashtra’s broader efforts to improve its business climate and attract both domestic and international investments. The state government’s ongoing focus on enhancing the Ease of Doing Business has been recognised by many in the industrial sector as a much-needed change to bring Maharashtra in line with other business-friendly states in India.
The simplification of land acquisition processes aligns with other initiatives under the Ease of Doing Business programme, such as reducing the time it takes to start a business, obtaining approvals, and ensuring smoother functioning for industries. These steps are particularly important as Maharashtra remains a key investment destination for industries ranging from manufacturing to technology. In addition to the removal of the NA clearance requirement, Minister Bawankule also announced an extension to the deadline for converting Class 2 land (leasehold) to Class 1 land (freehold). Class 2 land, typically granted for specific purposes, requires permission for transfer or sale. Class 1 land, however, is freehold and can be easily transferred without needing approval from authorities. The extension gives landowners more time to complete the conversion process, helping industries secure more flexibility with their land assets.
The Maharashtra government has also taken a firm stance on protecting industries from harassment and blackmail. In a related development, Chief Minister Devendra Fadnavis directed the police to take stringent action against those who attempt to extort or intimidate businesses. Fadnavis specifically mentioned the potential use of the Maharashtra Control of Organised Crime Act (MCOCA) against such individuals, irrespective of their political affiliations. This move underscores the state’s commitment to creating a safe and secure environment for industrial growth. With this progressive step, the Maharashtra government is clearly working towards creating a more efficient and business-friendly environment. By removing the need for non-agricultural land clearance and extending the deadline for Class 2 land conversion, the state is paving the way for easier industrial land acquisition. This overhaul, combined with stricter actions against industrial harassment, reflects the state’s dedication to fostering economic growth and securing Maharashtra’s place as a leader in India’s industrial development.
