The Karnataka Legislative Assembly has passed the Karnataka Land Reforms and Certain Other Law (Amendment) Bill, 2025, enabling conversion of up to two acres of agricultural land for setting up micro, small and medium enterprises (MSMEs) without requiring prior approval from the Deputy Commissioner.
Currently, landholders must seek permission under Section 95 of the Karnataka Land Revenue Act to change land use. Revenue Minister Krishna Byre Gowda said the amendment would simplify procedures, eliminate middlemen, and provide relief to entrepreneurs establishing small industries on farmland.
The Bill also exempts renewable energy projects — such as solar and wind power — from the conversion process, subject to payment of prescribed fees, to encourage clean energy generation in the State.
Additionally, the amendment removes the existing provision of up to three years’ imprisonment for selling agricultural land for non-agricultural use without prior approval, replacing it with a higher penalty of ₹1 lakh. This penalty will not apply to cases regularised under government schemes.