Rafique Aziz
Chhatrapati Sambhajinagar:
To reshape the business landscape of the state and reduce compliance burdens on entrepreneurs, the Department for Promotion of Industry and Internal Trade (DPIIT), under the Business Reforms Action Plan (BRAP) 2024, has granted relief to aspiring investors and entrepreneurs. They have been exempted from the mandatory compliance of non-agricultural (NA) use certificates while converting agricultural land for industrial purposes. Meanwhile, industry associations believe this measure will help boost the local economy in rural and semi-urban areas.
Under the policy of Ease of Doing Business (EoDB), any individual residing in a rural or semi-urban part of the district and owning agricultural land (outside the industrial estate) can now convert their land for non-agricultural use for industrial purposes.
A Government Resolution (GR) issued by the Department of Revenue and Forests on January 29, 2025, notifies that obtaining a non-agricultural use certificate is a time-consuming process. Therefore, entrepreneurs wishing to establish an industrial unit can proceed by merely obtaining development permissions or approving building plans from their respective Competent Planning Authority (CPA, the district collector). The change in land use has also to be made in village records by submitting a copy of the permission or plan to the Village Revenue Officer, stated the GR signed by Deputy Secretary Sanjay Dharurkar.
Recognising the delays and challenges entrepreneurs faced in obtaining the NA use certificate from the revenue department and the necessity of multiple permissions from various departments to set up an industrial unit, the state decided to eliminate the requirement of the NA use certificate. This decision falls under Sections 42 (A), (B), (C), and (D) as well as Section 44-A of the Maharashtra Land Revenue Code, 1966. Moreover, agricultural land can be utilised for both agricultural and industrial purposes through demarcation of land.
President of the Waluj Industries Association (WIA), Vasant Waghmare, said, " We welcome the decision. Now, with the new GR in place, entrepreneurs will no longer be obligated to purchase land in industrial estates, where costs can reach Rs 1.5 crore per acre and are often unaffordable. WIA has been advocating for reductions in MIDC land rates. This new amendment will significantly reduce the financial burden associated with land costs, allowing entrepreneurs (from rural and semi-urban areas) to set up units on agricultural land and begin manufacturing by fulfilling just a simple permission formality,” said Waghmare.