According to rules issued on 29 September, the Rajasthan government has made conversion of agricultural land to non‑agricultural use mandatory from 2 November for solar and wind energy projects.
Under the new rules, conversion is required not only for solar‑wind projects but also for biomass, biogas, hydro power, pumped storage and battery storage energy projects.
Landowners or developers must submit an online application for conversion of agricultural land, which will be filed with the concerned Sub‑Division Officer (SDO).
Conversion fee and penalty
The government has waived the conversion fee, which was normally 0.5 percent of the District Level Committee (DLC) rate. However, unauthorized non‑agricultural use can attract a penalty of up to four times the prescribed amount.
Industry sources said that waiving the fee alone will not solve the problem; the approval process remains complex and time‑consuming.
Impact on farmers
Many farmers lease their barren or unproductive agricultural land to solar companies. With conversion now mandatory, the process could become longer and more complicated for these farmers.
Farmers will also have to submit documents for conversion, which could affect their income.
Industry concerns
Industry representatives say that mandatory conversion will increase paperwork, affect project costs and timelines, and make it harder for investors to do business.
Rajasthan, one of the country’s leading solar‑energy producing states, has yet to see the long‑term impact of these rules.