RURAL LAND CONVERSION IN RAJASTHAN
Imagine owning farmland in rural Rajasthan and wanting to build a house or start a business. The rules to do this are laid out in the Rajasthan Land Revenue (Conversion of Agricultural Land for Non-Agricultural Purposes in Rural Areas) Rules, 2007.
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Everything You Need to Know About Rural Land Conversion in Rajasthan
Imagine owning farmland in rural Rajasthan and wanting to build a house or start a business. The rules to do this are laid out in the Rajasthan Land Revenue (Conversion of Agricultural Land for Non-Agricultural Purposes in Rural Areas) Rules, 2007. These rules explain when and how agricultural land (known as Khatedari land when individually held) can be converted to non-agricultural uses. In this guide, we unpack these rules in simple language, with real-life examples, tables, and bullet points for easy understanding. Whether you’re a farmer, builder, or entrepreneur, you’ll learn who can apply, what you can build, how much it costs, and how to follow the process smoothly.
Definitions: Key Terms Explained
Before diving into the details, let’s clarify some important terms used in the rules:
Khatedari land: This means land held by an individual under land records. In simple terms, it’s privately owned farm/Agricultural land, rather than government land. For example, if Ramesh owns a agriculture and his name is on the land record (Jamabandi), that is his Khatedari land.
Rural Area: Any area outside the official limits and planning zones of a town or city authorities like Jaipur/Jodhpur Development Authority etc. In Rajasthan, if a village or its outskirts are not part of a notified urban municipal area, it’s “rural” area land. (Rule 2(o)).
Residential unit: Land used for a family home or housing (up to 4,000 sq. meters).
For example, building a house or bungalow on your agriculture land. (Rule 2(p)).
Residential Colony/Project: A planned housing development (plots or flats) developed by someone (“Developer”) for sale. E.g., a small housing scheme in a village.
Commercial purpose: Using land for business or trade – shops, offices, guesthouses, Dhabas, workshops, etc. (Hotels or restaurants related to tourism are excluded here.) For instance, converting part of your farm into a shop or petrol pump. (Rule 2(b)).
Industrial purpose: Using land for factories, workshops, warehouses, IT industries, or tourism units. For example, setting up a small factory or a brick kiln. (Rule 2(g)). Note this excludes purely residential or simple commercial uses.
Public Utility purpose: Charitable or public services like dharamshalas, old-age homes, gaushalas, parks, orphanages, etc. (Rule 2(n)). Think of building an old-age home or rural clinic for public service.
Institutional purpose: Building schools, colleges, hospitals, or any institution for public use (charitable or educational), except strictly for public utility purposes already covered. For example, a rural college building. (Rule 2(h)).
Medical facilities: Clinics, dispensaries, hospitals, diagnostic centers. (Rule 2(i)). Setting up a small hospital on farm land.
Salt manufacturing purpose: Making salt or related products.
Food Processing unit: A factory that turns raw agri-produce (crops, dairy, etc.) into food products. This includes agro-processing and agri-marketing. For example, a unit making pickles or packaged snacks. (Rule 2(ddd)).
Solar/Wind Power Plant: Using land for renewable energy like a solar farm or wind turbines. (Rule 2(qqq), (t)). Example: installing solar panels on your 5 acres of land.
Agri-marketing/Agro-processing: Commercial activities involving agriculture products (trading, storing, processing raw goods). E.g., warehousing of grains. (Rule 2(aaa)-(aaaa)).
Integrated Township: A self-sufficient township (over 10 hectares) with housing, services, even space for light industry. Think of a planned residential-cum-industrial township project. (Rule 2(hh)).
Master Plan Area: The region covered by an approved city/town plan. (Rule 2(j)). This matters when land lies partly in a “peripheral belt.”
Peripheral Belt: The area around a city as defined in its master plan. If any part of a village is in this belt, the whole village is treated as urban/peripheral. (Rule 2(k)).
SEZ: Special Economic Zone approved under SEZ Act. (Rule 2(qq)).
Tourism Unit: A project approved by tourism authorities (e.g., heritage hotel, resort). (Rule 2(r)).
Urban Bodies: Urban local governments (municipality, improvement authority) or similar, per Rajasthan laws. (Rule 2(s)).
Tatkal Conversion: A fast-track process where applicants pay extra fees for expedited decision (we explain in Step 10).
Commercial Land vs Industrial Land: What’s the Difference?
These terms often confuse landowners. Here’s a quick comparison:
Commercial Land is for trade or business like shops, offices, showrooms, hotels (except “tourism unit” hotels), dhabas, petrol pumps, warehouses, etc. You might use it partly for living (like a shop-cum-residence). It does not cover industrial factories or tourism units.
Example: Converting a portion of farmland into a roadside dhaba or guesthouse.
Industrial Land is for manufacturing or production activities. This includes any factory, workshop, plant, IT unit, or even a brick kiln. (If it’s part of an industrial estate or SEZ, even better.) It can also include a tourism unit under this definition.
Example: Converting land into a small garment factory or a sugarcane crushing unit.
KEY DIFFERENCES:
Commercial use focuses on selling goods/services directly (shops, offices), while Industrial use is about making or processing goods (factories, plants). Also, conversion fees and permissions may differ by category (see tables below). For instance, converting 1,000 sq.m to a shop (“commercial”) is costlier (Rs.10/m²) than converting the same to a factory (“industrial”) (Rs.5/m²)
Purposes for Conversion: What Can You Build?
Under Rule 3 of the 2007, any agriculture land you own (Khatedari) in a rural area can be converted for specific purposes. These include (with examples):
Under Rule 3 of the 2007, any agriculture land you own (Khatedari) in a rural area can be converted for specific purposes. These include as below (with examples):
Residential unit: Building a family home. Example: Dinesh wants to build a house for his family on 400 sq.m. of his field. He can apply to convert that part into a residential plot.
Residential Colony/Project: Developing a housing colony (plots or flats). Example: A developer buys 2 acres and plans 20 houses/flats for sale.
Commercial purpose: Means use of the land for commercial activities. Example: Setting up a warehouse or showroom on land.
Industrial purpose/Industrial area/Estate: Factories or industrial areas. Example: A local entrepreneur builds a small scale textile mill on his farm.
Salt manufacturing: Producing salt from saline land.
Public Utility purpose: Dharamshala (rest house), gaushala (cow shelter), old-age home, public park, etc.
Institutional purpose: Schools, colleges, libraries, training centers, or charitable institutions.
Medical facilities: Clinics, nursing homes, diagnostic labs, etc.
Development of SEZ: Special Economic Zones (need govt approval, fixed charge of Rs.100/land).
Food Processing unit: A food processing factory (e.g. making pickles, juices, cereals). Note: Up to 10 hectares for Khatedari land can be used without formal conversion (see next section)
Solar/Wind/Biomass power projects: Solar farms, wind turbines, biomass plants, biogas, etc. (Owners must inform authorities 30 days prior, see next section).
Hydrocarbon exploration: Exploring for oil/gas. Land used up to 15 years without conversion, but must inform Collector 30 days before use.
Stadium, playground, sports complex: Large sports facilities (no charge for conversion).
Integrated Township: A planned township with mixed uses (requires higher-level approval).
Step-by-Step: Converting Land for a Dwelling, Cattle-Shed, or Store-House
Rule 5 makes this very simple. If you’re a Khatedar tenant (landowner) and want to build a dwelling house, cattle-shed, or store-house on your farm, you can convert up to 500 sq.m (about 5 marlas) without paying any conversion fees. Here’s how it works:
Check eligibility: You must own the land (Khatedari) in a rural area.
Area limit: The house/shed + surrounding space should not exceed 500 sq.m.
Apply (for record): Although no fee is needed, you typically still submit an application (Form-A) to the Tehsildar (revenue officer) requesting conversion. Attach land records and a simple sketch. The rules assume this is straightforward.
Conversion order: The Tehsildar will issue a conversion order approving your change of use. This official order shows the 500 sq.m is now non-agricultural. If you were to sell, this order would be needed in the deed.
Continue Khatedari: Importantly, even after conversion, this 500 sq.m remains in your name as Khatedari land – it’s not transferred to government. You just get to build on it.
Example: Suman has a small farm and wants to build her house (250 sq.m) and a cattle shed (100 sq.m). She can convert 350 sq.m as a combined residential/dairy area without fees. She submits Form-A, and the Tehsildar signs off. Later, she builds her home and sheds happily.
Key point:
No fees or charges (Rule 7 does not apply here). The only limit is area (500 sq.m). Beyond that, normal fees kick in.
Using Khatedari Land for Small Industries, Food Units, Solar/Wind
The rules encourage rural development by relaxing conversion for some new ventures on your own land. The procedures differ by purpose:
Small-scale industries, brick kilns (“kjawa”), institutional/medical/public utility uses (Rule 6): If you want to start a micro or small industrial unit (like a cottage industry or agarbatti making), or use land for a school, hospital, etc., up to 1 acre of your own farmland can be used without formal conversion. You do not need prior permission; you just proceed. The land remains Khatedari. There’s no fee.
Food Processing Unit (Rule 6A): You can use up to 10 hectares (about 25 acres) of your farm for a food processing factory (e.g. cold storage, flour mill) without conversion. Steps:
Start using the land for processing.
Within 30 days, file an Information Form-H to the Tehsildar (land officer) stating your intent.
Tehsildar checks the form and issues a Certificate (Form-I) if all is in order (confirming khatedar owns it).
New khasra (sub-field number) may be assigned in records and noted on the map.
If misuse is found, Tehsildar can warn you or impose a small penalty (max Rs.5,000 + Rs.100/day) to correct it.
The land stays your private land; no conversion fee is charged. Example: Priya, a farmer, starts a mango pickle unit on 2 hectares of her land. She files Form-H, gets Form-I, and goes ahead.
Solar, Wind, Biomass power (Rule 6B): You may use your Khatedari land for renewable power projects (solar farm, wind turbines, biogas, etc.) without conversion. Steps:
You or a partner installs the power plant.
Notify the Tehsildar and Rajasthan Renewable Energy Corporation 30 days before starting.
Tehsildar makes a note in the land records (Jamabandi) that the land is now a power project.
No fees are charged for this change.
Important: If you hold land above the legal ceiling (Rajasthan Ceiling Act, 1973) with permission, you must get state approval first before using it for power.
Example: Anil installs solar panels on 1 acre. He informs authorities via Form-E (per rule). The land is noted as “solar park,” but remains his.
In all above cases (small industries, food, solar), the land stays under the owner’s name (khatedari) No land is given to government; you simply convert use without changing ownership
Converting Heritage Properties into Heritage Hotels
Rajasthan is famed for its palaces and havelis. Rule 6C provides a special exemption for heritage properties on agricultural land. It says:
If you own a heritage building in a rural area and want to turn it into a heritage hotel, you apply (plain paper) with the Tourism Dept.’s recommendation. The prescribed authority then issues a conversion order (within the normal time).
No conversion fees are charged for this conversion.
However, the hotel can only occupy up to 1,000 sq.m or 10% of the existing building’s area (whichever is less) for commercial hotel use; the rest stays as heritage structure.
The rest of the land (around the palace) can still be private land.
Example: A royal haveli of 8,000 sq.m in a village is converted into a heritage hotel. The owner can use 800 sq.m for hotel rooms (10%) without fee, after getting the Tourism Dept’s nod and a conversion order.
Conversion Charges: How Much Does It Cost?
If your project does not qualify for free use (like the cases above), you pay a conversion premium (Rule 7). This is a one-time fee per square meter or percentage of land value, whichever is higher. Here’s a simplified table:
Purpose | Conversion Rate |
Residential unit (house) | Rs.5 per m² or 5% of land value, whichever higher |
Residential Colony/Project | Rs.7.50/m² or 7.5% of value. |
Commercial purpose (shops, offices) | Rs.10/m² or 10% of value. |
Industrial purpose/Industrial Estate | Rs.5/m² or 5% of value. |
Salt manufacturing | Rs.0.5/m² or 0.5% of value |
Public Utility (e.g. gaushala) | No fee for first 10,000 m². Beyond that, Rs.5/m² or 5% of value |
Institutional | Rs.5/m² or 10% of value |
Medical (hospitals) | Rs.10/m² or 10% of value |
SEZ (all sizes) | Flat Rs.100 (independent of area) |
Food Processing | 50% of industrial rate (so Rs.2.50/m² or 2.5% of value) |
Solar/Wind/Biomass power projects | 10% of industrial rate (so Rs.0.5/m² or 0.5% of value) |
Hydrocarbon exploration | Rs.10/m² or 50% of value. |
Stadium/Sports complex | No fee |
Integrated Township | (i) Hotel/residential parts at normal rates; |
(ii) rest of land at residential rate. |
Who Pays No Conversion Fee? (Exemptions)
Certain categories are exempted under Rule 8:
Government or Local Authority: No fee if a state department or local body converts land for official use. Example: Land converted for a rural school built by govt.
Tourism Units: A tourism unit (as defined earlier) set up by a private person under Rajasthan Tourism Policy and/or Rajasthan Investment Promotion Scheme-2024 (RIPS-2024)– the land conversion for it is free. (This is different from a private hotel; it refers to eco-tourism projects, etc.)
Agro-Processing/Agri-Marketing: Setup under RIPS 2024.
Approved Industries: If your new factory is an “eligible unit” under Rajasthan Investment Promotion Schemes (RIPS-2024), you get 75% exemption. (You still pay the rest 25% and get reimbursed.)
Technical Education: Converting land for a polytechnic or engineering college is free.
Green Industries: Industries declared “green” by the State Pollution Board (environment-friendly) may have no fee.
IT Parks/Companies: The first 4.65 lakh sq.m of IT parks/units are free (must comply with environmental laws).
Summary: In short, no-fee conversions include government projects, approved tourism or education projects, certain agri and IT projects, and green industries.. For most ordinary landowners, the fees above apply unless one of these special cases holds.
To know more about RIPS-2024 Scheme, Click Here
Prescribed Authorities for Land Conversion (Who will Approves the Land Conversion in Rajasthan?)
Depending on the project and its area, different officers handle the application
(Rule 9):
PURPOSE OF CONVERSION | AUTHORITY |
Residential (house) (≤ 4000 m²) | Tehsildar (local revenue officer). |
Residential Colony/Project | – Up to 10,000 m²: SDM/Sub-Divisional Officer. |
– 10,000–50,000 m²: Collector | |
– >50,000 m²: State Govt. | |
Commercial | – ≤5,000 m²: SDO. |
– 5,000–50,000 m²: Collector | |
– >50,000 m²: State Govt. | |
Industrial/Industrial Area/Estate | – ≤10,000 m² (no tourism): SDO. |
– ≤200,000 m² (incl. tourism): Collector | |
– >200,000 m²: State Govt. | |
Salt Manufacturing | – ≤200,000 m²: SDO |
– >200,000 m²: Collector. | |
Public Utility | – ≤10,000 m²: SDO. |
– 10,000–50,000 m²: Collector | |
– >50,000 m²: State Govt. | |
Institutional / Medical | – ≤10,000 m²: SDO. |
– 10,000–50,000 m²: Collector | |
– >50,000 m²: State Govt | |
SEZ | State Government. |
Food Processing | – ≤10,000 m²: SDO. |
– 10,000–50,000 m²: Collector | |
– >50,000 m²: State Govt | |
Solar/Wind/Biomass Power Projects | – ≤10,000 m²: SDO. |
– 10,000–50,000 m²: Collector | |
– >50,000 m²: State Govt | |
Hydrocarbon Exploration | Collector only. |
Stadium/Sports complex | Collector only. |
Integrated Township | State Government. |
How to apply: You (or your agent) submit an application (Form-A) to the above authority with land records, project details, fees, etc. The authority must decide in 90 working days. (sub-divisional or below) or 30 days if it’s a Tehsildar/SDO order (as per normal timelines). If they delay, higher officials step in to complete the process.
Example: If Maya wants to convert 8,000 m² for a factory, since it’s <10,000 m², she applies to the SDM (Sub-Divisional Officer). If it were 25,000 m², she’d apply to the District Collector.
Tatkal (Fast-Track) Conversion
Need approval urgently? The rules offer a Tatkal conversion option (Rule 9A..) Steps:
Apply in Form-A (same as normal) to the prescribed authority, but mark it as Tatkal.
Pay extra fees: A non-refundable Tatkal fee of Rs.10,000 plus Rs.5 per sq.m (in addition to normal conversion charges).
Timeframe: The authority must decide within 15 working days instead of 90. If the SDO doesn’t decide in time, the Collector will finish within 10 days, etc.
If approved, you get an order just like normal conversion (but faster).
Use Case: If you have purchased farmland and the buyer insists on quick conversion (e.g. for bank loan purposes), Tatkal saves time. Remember the extra fee isn’t adjusted against the main conversion charge (it’s a premium for speed).
Changing the Purpose After Conversion
Sometimes, after getting a conversion, you might want to change what you use the land for (Rule 10.):
Applying for new purpose: If you got permission for one use (say “commercial”) but now want a different one (e.g. “industrial”), you must apply in Form-C to the same authority. You also pay the difference in charges if the new use costs more. (If it costs less, usually no refund.) You have 7 days to submit a hard copy if you applied online.
Special cases: If you converted for a tourism unit but it turns non-tourism, it’s treated as commercial and you pay the difference. If you convert a green/white industry to a polluting one, your conversion can be cancelled
No prior permission use: If you start using converted land for another use without permission, rule 10(3) allows the authority to regularize it if you pay 25% of the new conversion charges (in addition). But it’s always better to apply first.
Example: After converting 1000 m² from agriculture to “institutional” (charity school), Ajay finds out a factory is more profitable. He must apply to change it to “industrial”. If industrial rate is higher, he pays the extra. The authority will then issue a revised order.
Transferring Converted Land
Once land is converted, it can generally be sold or transferred like other property (Rule 11). Key points:
Transfer allowed: Any land duly converted can be transferred. The new owner gets the benefit of conversion, subject to conditions.
Regularizing old transfers: If someone transferred converted land before the 2012 amendment without permission, the new owner can still regularize it by applying and paying 25% of the conversion charges
Part transfer rule: You cannot sell just a piece of converted land if it was converted for a colony, industrial area, township, or tourism unit unless you get permission first (This is to prevent splitting approved projects illegally.)
Updating records: Upon transfer, the buyer should inform the Tehsildar and get the mutation updated in the Land Records (Jamabandi) The converted land will then be recorded as non-agricultural with its purpose noted.
Example: Seema had 500 m² converted for a shop, then sold it. She should have the conversion order and give it to the buyer. The buyer must then update the revenue records. If Seema sold just 100 m² (part of that 500) without permission, that’s not allowed. unless regularized.
Using Converted Land and Penalties
Use timeline: After conversion, you must actually start using the land for the approved purpose within 5 years (or a longer period set by Govt.) This is because the policy aims to promote development, not idle land-banking.
If you fail to use the land within 5 years, the Collector can withdraw the conversion order and forfeit your fees.
You can get one extension of 5 more years by paying 25% of the current conversion charges. If after extension you still don’t use it, the order is cancelled.
Example: Mohan converts his land in 2020 for a warehouse. By 2025, if he hasn’t built or used it, the government can revoke the permission and keep the fees he paid.
Penalties: If you misuse the land (e.g., build something not allowed by the conversion):
The Tehsildar can issue a notice to correct it (remove illegal structures, revert use).
In serious cases, a small penalty can be imposed (e.g. up to Rs.5,000 plus Rs.100/day for continuing default).
Regularization: If you already used land without permission, you can still apply for regularization (Rule 13). You pay a higher penalty (4× the normal charge) to legalize it. If applied before 31 Dec 2018, it was only 1.5×. The authority then treats it like a normal conversion application.
Other Important Points
Layout Plans: For big projects (residential colonies, industrial areas, townships) you must get a layout/building plan approved by a committee (e.g., Collector’s appointed committee) before conversion is finalized. Typically 40% of colony land is for roads/facilities, 60% for housing, etc.
Tree Plantation: If trees were cut during conversion, some rules insist on plantation (often 3:1 replacement) as a condition.
SC/ST Land: If a Scheduled Caste/Tribe person’s land was converted, they cannot transfer it to non-SC/ST persons without permission (see Rule 6A(6)). This protects tribal land rights.
Environmental Clearance: Some uses (like a big factory, solar farm, etc.) may also need separate approvals (Environment, Pollution Control). Those are outside these revenue rules but worth noting.
Layouts and Approvals: Particularly for large residential projects, obtain needed local approvals (e.g., from Panchayat Samiti, Urban Development Dept) as conversion alone isn’t enough to start construction.
Stay Updated: These rules have been amended several times (see notes on pages). Always check the latest in official gazette or the revenue department website.
For a clear step-by-step, here’s a quick conversion process flow for a typical case:
Check eligibility: Is land Khatedari, rural? Purpose allowed?
Compute charges: Find rate in table above and calculate fee.
Apply (Form-A): Gather documents (deed, jamabandi copy, ID, plan sketch, etc.). Pay challan.
Submit to Authority: Tehsildar/SDO/Collector as per table.
Wait for Order: Usually within 90 working days (15 if Tatkal).
Update Records: Once order issued, get mutation done (rule 12).
Use Land: Start development within permitted period to avoid penalties.
Always keep copies of everything (applications, challans, orders) as proof in case of audit.
For any complex case (like industrial projects, township, or disputes), it’s wise to consult a qualified advocate or the revenue department’s Land Record Officer. These rules aim to be farmer-friendly (e.g., fee waivers), but proper paperwork is key.
For more details or help understanding how these rules apply to your land, contact the Legalman Assistant. Our team can guide you through filing applications, calculating fees, and ensuring compliance with all requirements. Don’t navigate these rules alone—reach out for expert advice and make your rural land project a success!
Documents Required For Land Conversion
- Copy of Adhar Card of all land owner
- Land Jamabandi Copy
- Mutation (Namantaran) copy
- Other Chain documents of the land
- Exemption Certificates if claim the exemption
- Other documents as per requirement