Maharashtra allows tribal farmers to lease barren land to private entities

Maharashtra plans a law allowing tribal farmers to lease barren land to private entities, enabling steady income while safeguarding ownership. The move, aimed at attracting private investment, has drawn criticism from Congress, citing possible exploitation by industrialists

Mumbai: Maharashtra Revenue Minister Chandrashekhar Bawankule on Saturday said tribal farmers in the state will soon be able to lease their barren land to private entities, enabling them to generate additional income, and a law regarding this will be introduced.

The Congress, however, alleged that the government’s decision will benefit industrialists and lead to the exploitation of tribals. Officials said the move would not only provide tribals an opportunity to have a steady source of income but also safeguard their ownership rights.

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Talking to reporters in Nagpur, Bawankule said, “Tribal landowners will benefit from this decision. If a tribal farmer wants to develop his land in partnership with an industrialist, he can now approach the district collector and take the final decision. Earlier, such proposals had to be approved at Mantralaya, the state administrative headquarters in Mumbai.”

He, however, clarified that the proposed law will apply only to barren land and not fertile land owned by tribals. “I have received several requests from tribal landowners in Palghar and Nandurbar districts. If a private company wants to set up solar panels under a government scheme, it can agree with the tribal landowner, who will continue to receive a fixed annual payment. Such income would not be possible from barren land,” Bawankule said.

He said that the proposed legislation would also safeguard tribal ownership, as even if land is leased for a longer period, the owner would continue to receive payments annually from the entity with whom the agreement is made.

Earlier on Friday, the minister had said that tribal farmers will be able to lease their land directly to private parties. At present, tribal farmers are not permitted to independently enter into lease agreements with private entities.

He said the proposed change aims to give them direct access to private investment and generate additional income from their holdings. According to the minister, the agreements will require the participation of the district collector to ensure transparency and fairness in the process.

“The minimum lease rent will be Rs 50,000 per acre annually or Rs 1,25,000 per hectare a year. Farmers and private parties can mutually decide on a higher amount,” he said. Bawankule said that tribal farmers will be allowed to enter into memoranda of understanding (MoUs) with private companies for mineral extraction if major or minor minerals are discovered on their land.

Farmers would receive monetary benefits per tonne or per brass of minerals extracted, though the exact quantum of benefits is yet to be determined, he said. According to officials, a policy is being framed to enable tribal communities to secure a steady source of revenue while safeguarding their ownership rights. Until now, such transactions were tightly regulated to prevent any misuse of tribal land, often leading to delays and dependence on state-level permissions.

Maharashtra Congress Legislature Party leader and former minister Vijay Wadettiwar, however, alleged that the government’s decision will benefit industrialists. “This decision is basically aimed at benefiting certain industrialists and influential people who would exploit the tribals using the proposed new law,” he claimed.