Assam Moves to Overhaul Land Rules for Industry and Tea Estates

Photo Courtesy: nenow

Guwahati: The Assam government moved to shake up land use laws on July 27. Revenue and Disaster Management Minister Keshab Mahanta tabled two separate bills in the state Assembly to accelerate infrastructure development and unlock dormant tea garden acreage.

The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (Assam Amendment) Bill, 2026, aims to fast-track development. It streamlines acquisition for defence, rural infrastructure, industrial corridors, affordable housing, and airport-linked urban projects. The bill also tweaks Section 40 of the existing Act. This change lets the state invoke urgency powers to grab land during natural disasters or state-declared calamities. Mahanta noted the goal is to speed up projects while keeping land footprints small. He told the House, "The amendment is aimed at facilitating the timely execution of critical infrastructure and development projects while ensuring that land acquisition is restricted to the minimum area required for such projects."

A second proposal, The Assam Fixation of Ceiling on Land Holdings (Amendment) Bill, 2026, targets the tea sector. It allows owners to use or lease up to five per cent of their estates for non-core commercial activities. Owners can develop the land themselves or lease it to third parties for terms set by the government. Approved ventures include eco-friendly tea tourism, animal husbandry, green energy, food processing, and social infrastructure. The government expects these measures to attract institutional investment and boost revenue for estates. The state Cabinet cleared both proposals on July 10. The Assembly will now debate the bills before a final vote.

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