Uttar Pradesh Cuts Land-Use Conversion Fees by Up to 50% to Speed Up Project Clearances

 

Lucknow: The Uttar Pradesh government has introduced major changes to land-use conversion rules, reducing conversion charges by up to 50% and giving local development authorities greater powers to approve land-use changes. The move is aimed at speeding up project approvals, reducing costs and improving the ease of doing business in the state.

Under the new decision, development authority boards can approve land-use changes for plots of up to 6,000 square metres without seeking separate state-level clearance. Earlier, such approvals could take months because of the additional level of government approval.

The revised fee structure provides significant reductions across different categories. The charge for converting agricultural land for residential use has been reduced from 50% to 25% of the applicable circle rate. For industrial use, the fee has been reduced from 20% to 15%, while commercial conversion charges have fallen from 150% to 75%. Institutional conversion charges have been reduced from 100% to 50%.

The state government expects the reforms to reduce financial pressure on developers and help projects move through the approval process faster. The measures could also support urban expansion and encourage greater investment in residential, commercial and industrial development.

For the real estate sector, the changes are particularly relevant to developers dealing with land parcels that require conversion before construction or development can begin. Faster approvals and lower conversion costs could improve project viability and reduce delays.

Uttar Pradesh’s latest land-use reforms signal a push towards simpler approvals and lower development costs as the state seeks to accelerate urbanisation and attract fresh real estate investment.

By The Realty Times News Bureau