The Uttar Pradesh Cabinet approved amendments to the State’s land use conversion charge rules framed under urban planning law on 15 September 2026, and the amendments were notified in September. The changes reduce the charge payable when land use is changed under a master plan and move decisions on smaller plots to local development authorities.
What changed
Development authorities such as those for Lucknow, Kanpur and Agra can now decide land-use change applications for plots of up to 6,000 sq m within the master plan, subject to a cap of 1% of the area permitted under each land-use category.
Reported charge reductions, as a percentage of circle rate, are: agricultural to industrial from 20% to 15%; to residential from 50% to 25%; and to institutional from 100% to 50%. Conversion from industrial use is set at 15% for residential, 50% for office and 75% for commercial. Interest on instalments is reported as MCLR plus 1%, in place of 12% per annum.
Timelines are fixed: technical scrutiny in 22 days, 60 days for the applicant to answer queries, 30 days to decide objections, and 15 days for final approval after payment. A six-member committee chaired by the authority’s vice-chairperson will hear objections.
Why it matters
Conversion charges are often a large part of project cost on land bought at agricultural rates. A cut of up to half, with defined timelines, changes feasibility for mid-size residential, institutional and logistics projects in cities under UP’s development authorities.
These rules apply to development authorities under the urban planning framework. Noida, Greater Noida and YEIDA are industrial development authorities that allot land on lease under their own regulations, so buyers there should not assume the new rates apply without checking the Authority’s own rules.
Practical points
- Recalculate conversion cost on pending proposals using the revised percentages before finalising land prices.
- Track the 22-day and 30-day stages; delays beyond them can be raised in writing with the authority.
- Confirm that the proposed use falls within the 1% cap for that land-use category.
- Conversion approval does not cure title defects; complete title and revenue checks separately.
Sources: Indian Masterminds, 1 Oct 2026; Indian Masterminds, 26 Sep 2026.
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