Assam Government Proposes Sweeping Land Reforms for Infrastructure and Tea Estates

Guwahati: The Assam government tabled two bills in the Assembly on July 27 to overhaul land use rules. Revenue and Disaster Management Minister Keshab Mahanta introduced the legislation to simplify acquisition and unlock commercial potential for estate owners. It is a major policy shift. The Cabinet cleared these proposals on July 10.

The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (Assam Amendment) Bill, 2026, fast-tracks development. It exempts specific projects from existing land acquisition hurdles. These include national security, defence, rural infrastructure, and affordable housing. The list continues. It covers industrial estates, industrial corridors, and airport-linked urban development like aero city projects.

Mahanta said the amendment is intended to facilitate the timely execution of critical infrastructure and development projects while ensuring that land acquisition is restricted to the minimum area required. The bill also updates Section 40 of the parent Act. It gives the government power to trigger emergency acquisition clauses during state-declared natural disasters or calamities.

Separately, the state introduced The Assam Fixation of Ceiling on Land Holdings (Amendment) Bill, 2026. This allows tea garden owners to use five percent of their land for non-core commercial activities. Owners can also lease this land to third parties. Permitted ventures include eco-friendly tea tourism, food and cash crop farming, animal husbandry, green energy, food processing, and social infrastructure. The state aims to boost investment and diversify revenue streams for these estates.