Assam cabinet clears automatic land conversion for MSMEs, solar projects; eases rules for private universities and schools

The Assam Cabinet on June 23 approved a series of reforms aimed at boosting industrial growth, education and tourism in the state, including automatic conversion of agricultural land for setting up micro, khadi and allied enterprises as well as solar power projects.

Announcing the decisions after the Cabinet meeting, Assam Chief Minister Himanta Biswa Sarma said the Cabinet approved the Assam Regulation of Re-classification and Re-classification-cum-Transfer of Lands (Amendment) Bill, 2026, which will be introduced during the next session of the Assembly.

The amendment will allow automatic conversion of agricultural land for micro-industries, khadi and allied enterprises, and solar energy projects without requiring prior approval from district commissioners, a move expected to accelerate investment and ease the process of setting up small-scale ventures.

In another significant decision, the Cabinet approved amendments to the Assam Private Universities Act, 2007, relaxing the minimum land requirement and endowment fund criteria for establishing private universities in the state. The government also approved easing certain regulations governing private schools to facilitate the expansion of educational institutions and improve access to school education.

To strengthen the tourism sector, the Cabinet approved the Assam Tourism Accommodation (Development and Registration) Rules, 2026. The new framework introduces a single-window registration system for homestays and other accommodation facilities and provides for automatic renewal of registrations every three years.

The Cabinet also sanctioned ₹9.75 crore for the Assam Tea Corporation Limited (ATCL) to implement a proposed voluntary retirement scheme (VRS) for its executives.

Additionally, the government extended the validity of licences for all fair price shops across the state until December 31, 2026, from the earlier deadline of June 30. The extension aims to ensure uninterrupted distribution of foodgrains to beneficiaries covered under the National Food Security Act (NFSA).

The decisions are expected to simplify administrative procedures, encourage private investment, strengthen educational infrastructure and provide a boost to tourism and renewable energy development in Assam.