Converting agricultural land to non-agricultural (NA) use has always carried a premium — a charge calculated on the jantri (government-notified) value of the parcel. In November 2024 the Gujarat government reduced that premium from 30% to 10% of jantri for revised NA permits, a change announced by Chief Minister Bhupendra Patel to speed up conversions and add transparency. This guide explains what the cut covers, who it applies to, and why it tilts the economics toward private Section 63AA parcels.
What exactly changed
The premium charged on revised NA permits was reduced from 30% of the prevailing jantri rate to 10%. The premium is the conversion charge a landholder pays to change a parcel's use from agricultural to non-agricultural — it is separate from stamp duty, registration and any industrial-policy incentive. By cutting the rate to a third of its previous level, the government lowered a fixed entry cost that sits on top of every agricultural-origin industrial parcel.
Who it applies to
The reduced rate applies to lands where NA status was previously granted without premium recovery — the charge is now levied on the existing applicant or occupier at the lower 10% rate. It does not re-open cases where premium recovery had already been decided. The relief is aimed at parcels that were restricted-tenure or in an undivided condition, and is part of a broader 2024–25 push to liberate agricultural land for productive use.
Why it matters for industrial buyers
Private parcels under Section 63AA — non-farmer purchase of agricultural land for industry — carry the NA/conversion cost that GIDC plots (already non-agricultural) do not. The premium cut narrows that gap. A private parcel with clean title and good geometry now competes more directly on landed cost with a GIDC transfer, while still offering the scale, contiguity and faster possession that private land is bought for. Read alongside the Viksit Gujarat Industrial Policy 2026 incentive stack, the change improves the after-incentive cost of bringing greenfield land into production.
What still applies
- Stamp duty and registration are charged separately, on the higher of jantri or consideration.
- Section 63AA post-purchase notice to the Collector and Mamlatdar within 30 days still applies.
- Title diligence to the root remains essential on agricultural-origin parcels.
- A pending jantri revision could change the rupee value of a 10% premium even if the rate holds — time the conversion with that in mind.