India’s renewable energy ambitions rank among the most aggressive in the world. However, a fundamental challenge that underpins the nation’s renewable energy goals, significantly impeding timely project execution – land acquisition.
Land acquisition is the most critical element for any renewable energy project, as it forms the foundation for its development. Without securing suitable land, no project can be commenced or executed.
The complexity of land acquisition in India stems largely from its governance structure. Under the Indian Constitution, land is a state subject. Thence, states are responsible for creating and enforcing land-related laws. Consequently, there is no uniform national law governing land acquisition for renewable energy projects. Instead, companies or developers must navigate an intricate web of state-specific land revenue laws, tenancy regulations, ceiling limits and transfer restrictions. These variations in land governance create significant hurdles in project execution, especially for developers operating across multiple states.
The regulatory framework for renewable energy also varies from state to state. Every state has its own renewable energy policy, implemented through designated state nodal agencies. These agencies prescribe different requirements for land identification, approvals and timelines.
The regulatory landscape is equally fragmented, adding to this complexity due to the absence of a standardised acquisition process. Documentation inconsistencies, unclear land titles and incomplete digitisation of land records exacerbate the issue. Normally, for a power project, a 30-year land record is considered desirable for conducting due diligence of a land parcel. Completing this due diligence can be time-consuming and a complex process.
Another major bottleneck is the requirement of converting agricultural land into non-agricultural (NA) land, which is mandatory for renewable power projects. In many states, land is further categorised into restricted and non-restricted categories. Certain types of land, such as forest land, grazing land or land allocated under special government schemes – cannot be easily acquired or leased for private projects. Developers must undertake extensive due diligence to ensure legal viability before proceeding with an acquisition, significantly slowing down the entire process.
Land may appear to be a passive resource, but in the renewable energy sector, it is the foundation upon which the entire project rests
Furthermore, practical challenges on the ground further amplify the complexity. For example, in the Dhule district of Maharashtra, land is classified into Class I and Class II categories. Class II land must be converted into Class I before it can be leased or utilised for renewable energy projects, adding an additional layer of regulatory compliance. In the Mandsaur district of Madhya Pradesh, acquisition of Patta land (land with conditional ownership rights) follows a separate, more convoluted acquisition process.
Ceiling laws pose additional challenges. Many states impose limits on the amount of agricultural land that an individual or entity can hold. While originally these laws were enacted with social equity objectives, they often create complications in aggregating large land parcels for renewable energy projects.
Another sensitive issue involves land owned by members of the scheduled castes (SC). Such land cannot be sold directly to developers, unless it is first converted into general category land by the landowner itself, following a prescribed legal process. While these protections are essential to prevent exploitation, for developers, they introduce additional procedural steps that must be navigated with caution and transparency.
Beyond land acquisition, developers also face challenges related to ‘right of way’ (RoW) for access roads, transmission lines and power evacuation infrastructure. Securing RoW often involves negotiations with multiple landowners and coordination with local authorities. Resistance at the local level, concerns over compensation and administrative delays frequently disrupt project timelines.
As India accelerates its renewable energy transition, addressing land acquisition challenges will be critical. Greater standardisation of processes, improved digitisation of land records, clearer policy frameworks and stronger co-ordination between state agencies can significantly reduce execution risks. Without meaningful reform in land governance, the pace of renewable energy deployment may struggle to match the country’s ambitious targets.
Land may appear to be a passive resource, but in the renewable energy sector, it is the foundation upon which the entire project rests. Ensuring timely, lawful, and transparent land acquisition is not merely a procedural requirement; it is the cornerstone of India’s clean energy future.