In its recent cabinet meeting, the Andhra Pradesh government has decided to allow leasing of allotted land to renewable energy (RE) companies, with an aim to create stable income opportunities for poor farmers.
The move, which is part of the coalition government’s wider revenue reform, is expected to help small and marginal farmers secure a stable livelihood while helping to boost clean energy growth in the state.
According to official figures, Andhra Pradesh has 36.36 lakh acres of allotted land. Of this, 13.62 lakh acres are eligible for private ownership status, while 9.93 lakh acres have already been transferred.
Under the new policy, around 26.43 lakh acres can be leased exclusively to renewable energy companies involved in solar, wind, compressed biogas (CBG) and pumped storage projects.
The leasing process will be through the New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP), or the soon-to-be-established Rural Development Council.
The government has already identified suitable areas for setting up renewable energy production facilities and has ensured that these projects are developed only in designated zones.
Companies will be able to acquire government land in such regions, while private or allocated land can be taken on lease.
Steady income
Farmers who lease their land to RE projects earn between ₹30,000 and ₹40,000 per acre per year, with a 5% increase every two years.
In addition, unemployed members of farmers’ families will be given priority in these enterprises and the upcoming factories.
“The decision has been taken with the intention of bringing tangible benefits to the poor,” Revenue, Registration and Stamps Minister Anagani Satya Prasad told The Hindu.
“Allowing lease of allotted land for energy renewal projects is part of our larger reform that will strengthen the revenue system and uplift the poor. This decision will ensure stable income for small and marginal farmers while making Andhra Pradesh a hub for RE. It will also help provide employment to youth from these families, contributing to our vision of a poverty-free state,” the minister said.
Published – 12 Nov 2025 19:32 IST
