Jaipur: The state govt has made conversion of agricultural land mandatory for renewable energy projects, reversing a provision introduced by the previous Vasundhara Raje govt in 2014.The move has raised apprehensions in the renewable energy industry over increased red tape, project delays and its impact on the ease of doing business.While govt has exempted the industry from land conversion charges (0.5% of DLC rate), the approval process is very tedious, industry representatives said.Under the earlier arrangement, land-use conversion for solar projects was optional. Developers or landowners could seek conversion if required for other purposes, like financing.For instance, banks were often reluctant to extend loans against agricultural land for industrial projects, making conversion necessary in such cases. Those setting up solar projects without such requirements, however, could retain the agricultural classification of their land.The new Rajasthan Land Revenue (Use of Agricultural Land for Non-agricultural Purposes in Rural Areas) Rules, 2026, were notified on Sept 29 and made effective from Nov 2.The rules cover solar and wind power projects, biomass and biogas plants, hydro projects, pumped storage projects and battery storage, among others.Under the new framework, landowners will have to submit an online application to the sub-divisional officer along with necessary documents.Govt has also introduced provisions for penalties of up to four times the prescribed premium for unauthorised non-agricultural use.The change could particularly affect farmers who have been leasing out unproductive and barren agricultural land to solar developers. The new requirement could make the process more cumbersome for both landowners and developers.
