Published Mar 05, 2026 | 1:18 PM ⚊ Updated Mar 05, 2026 | 1:18 PM
The original Assigned Lands Act of 1977 was enacted with a clear purpose: to protect government-allotted lands from being snapped up by the powerful.
Synopsis: Andhra Pradesh has amended the Assigned Lands Act, 1977, to lease over 26 lakh acres of fallow land for renewable energy projects. The reform promises ₹10 lakh crore in investments and 7.5 lakh jobs, offering farmers fixed annual rent. While hailed as transformative, concerns remain over compensation adequacy, land degradation, and long-term safeguards for vulnerable SC/ST communities.
In a move to secure land for the renewable energy sector, the Andhra Pradesh state Legislative Council on Wednesday, 4 March, passed a crucial amendment to the Assigned Lands (Prohibition of Transfers) Act, 1977. The bill had already sailed through the Assembly on Thursday, 25 February.
Revenue, Registration, and Stamps Minister Anagani Satya Prasad, who piled the bill, hailed the reform as a “win-win” proposition. He painted a picture of a double bonanza—steady income for the state’s poorest farmers and a giant leap for green growth. The minister projected a staggering ₹10 lakh crore in investments and the creation of 7.5 lakh jobs, positioning it as a cornerstone of Andhra Pradesh’s ambitious Integrated Clean Energy Policy 2024.
However, as the state races toward a net-zero future, the policy’s safeguards for vulnerable landholders are under a microscope, with the pitfalls of past land reforms are any indication.
The original Assigned Lands Act of 1977 was enacted with a clear purpose: to protect government-allotted lands from being snapped up by the powerful.
These plots, totalling a massive 36 lakh acres across the state, were given to landless poor, particularly Scheduled Castes (SCs), Scheduled Tribes (STs), and other marginalised communities.
Of this extent, 26.43 lakh acres have been identified as eligible for lease under the amended Act. The goal was to give the assignees a leg up, fostering self-sufficiency through agriculture. To prevent a return to feudalism, the Act strictly prohibited any sale, lease, or mortgage of these lands.
Previous attempts to tweak the law had turned controversial. Amendments in 2023, which allowed transfers after 20 years of possession, sparked fierce debates. The government was accused of diluting protection for political or corporate favour. The current amendment marks a significant shift, moving away from outright sales to a long-term leasing model. The idea is to keep the land with the poor on paper while unlocking its economic potential for the state’s green push.
Of the total 36 lakh acres, over 26 lakh acres are now deemed eligible for this experiment. These are mostly barren or fallow tracts located in designated zones, earmarked for solar, wind, green hydrogen, and compressed biogas projects. The new law allows assignees to enter tripartite lease agreements, bringing the government and clean energy developers to the table. These leases can run up to 30 years, with an option to extend by mutual consent.
For the landowner, the deal is simple: a fixed rental yield of ₹31,000 per acre annually. To protect against inflation, this amount will increase by 5 percent every two years. The payments are channelled directly to the assignees’ bank accounts, cutting out middlemen.
The initial phase will focus on setting up solar parks with a target of 10,000 MW, exclusively in designated non-agricultural zones. The plan also covers ancillary infrastructure, such as data centres and green ammonia plants, with sites like Anakapalle and Kakinada under the government’s radar. The government is positioning the scheme as a way for the poor to earn a steady income from unproductive land without forfeiting their title. Minister Satya Prasad, during Assembly deliberations, had said the policy “turns barren lands into goldmines.”
The government is banking on this amendment to be the catalyst for making Andhra Pradesh an energy power-house. Investment proposals already in the pipeline total a mind-boggling ₹10 lakh crore.
Giants like Waaree Energies are setting up a ₹8,175 crore lithium-ion gigafactory in Anakapalle, which alone will create 3,000 direct jobs. Adani Green has also revived plans for a 300 MW solar offtake. The state is pulling out all the stops to position itself as India’s undisputed clean energy hub.
Economically, the new initiative is seen as an agent of ancillary growth, spurring solar manufacturing and EV ecosystems while reducing reliance on imported fossil fuels.
As Minister Satya Prasad noted, “Renewable energy isn’t just power—it’s the backbone for industries and data centres.” Visakhapatnam is already emerging as a key green corridor in this grand plan.
Despite the fanfare, key concerns refuse to die down. The first is whether the compensation is adequate. At ₹31,000 per acre—roughly ₹85 a day—the base rate could be eroded by 7-8 percent annual inflation, which outpaces the biennial 5 percent hikes. What happens after the lease expires in 30 years is another big question mark. Will land degraded by solar panel installations be reclaimable for farming is one important question that arises.
Though the land is pitched as fallow, long-term leases could still displace families who depend on common grazing or marginal cultivation. This could inadvertently worsen landlessness in SC/ST communities, who hold over 60 percent of the assigned lands.
On paper, the numbers are impressive. ₹10 lakh crore in investments could dwarf the state’s current ₹2.5 lakh crore GDP, while 7.5 lakh jobs would bring down its 6.5 percent unemployment rate. Yet, without ironclad safeguards, the policy risks perpetuating old inequities, turning the “assigned” into the “exploited.”
For now, the reform puts Andhra Pradesh in the fast lane of India’s energy transition. But its impact is measured in the fields. The question that dawns on everyone is: will the assignees harvest steady rupees equal in value to the sacrifice they are making now.
(Edited by Amit Vasudev)
