Uttar Pradesh Announces 100% Stamp Duty Exemption for Solar Project Land Acquisition

The Uttar Pradesh government has announced a 100% exemption of stamp duty on land purchased or leased for setting up new solar plants and IT and logistics parks. The principal secretary with the UP government, Leena Johri, issued the government order. The exemption will be applicable on land purchased or leased for at least a 10-year period.

This decision is part of the Uttar Pradesh Warehousing and Logistics Policy, 2022, which seeks to encourage the development of logistics parks in the state. The exemption is also applicable to the purchase or allotment of land for truckers’ parks and solar energy units by industrial development authorities.

To confirm eligibility for the exemption, the district magistrate or deputy commissioner of industries must sign as a witness on the instrument of conveyance or lease, stating that the deed is being executed under the policy.

The government order also stated that any unit that has already obtained stamp duty exemption under another policy will not be eligible for the exemption under this notification.

Developers who wish to avail the stamp duty exemption on land acquisition for solar projects in Uttar Pradesh are required to provide an irrevocable bank guarantee during the registration of the land deed. This bank guarantee should be equivalent to the amount that is exempted as stamp duty and should be in favor of the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA).

This measure is aimed at ensuring that the benefit of the exemption is passed on to the developers and that they fulfill their obligations towards setting up the solar projects. The UPNEDA is a state nodal agency that is responsible for promoting, developing, and deploying renewable energy sources in Uttar Pradesh. The step is expected to boost the development of solar projects in the state and attract more investments in the renewable energy sector.