The Andhra Pradesh government, at its recent Cabinet meeting, has decided to permit the leasing of assigned lands to the renewable energy (RE) companies, aiming to create steady income opportunities for the poor farmers.
The move, which is a part of the coalition government’s broader revenue reforms, is expected to help small and marginal farmers secure a stable livelihood, while contributing to the growth of clean energy in the State.
According to official data, Andhra Pradesh has 36.36 lakh acres of assigned land. Of this, 13.62 lakh acres are eligible for freehold status, while 9.93 lakh acres have already been converted.
Under the new policy, about 26.43 lakh acres can be leased exclusively to the Renewable Energy companies engaged in solar, wind, compressed biogas (CBG), and pumped storage projects.
The lease process will be carried out through the New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP), or the soon-to-be-established Rural Development Board.
The government has already identified suitable areas for setting up RE plants, ensuring that these projects are developed only in the designated zones.
Companies will be allowed to obtain government lands in such regions, while private or assigned lands can be taken on lease.
Steady income
Farmers who lease their lands to the RE projects will earn between ₹30,000 and ₹40,000 per acre annually, with a 5% increase in every two years.
In addition, unemployed members of the farmer families will be given priority in jobs in these companies and upcoming factories.
“The decision has been taken with an intention to bring tangible benefits to the poor,” Revenue, Registration and Stamps Minister Anagani Satya Prasad told The Hindu.
“Allowing assigned lands to be leased for RE projects is part of our larger reform to strengthen the revenue system and uplift the poor. The 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 the youth from these families, contributing to our vision of a poverty-free State,” the Minister said.
Published – November 12, 2025 07:32 pm IST
