UP Govt Eases Industrial Land Use Norms, Removes CLU Requirement

Lucknow, May 25 (KNN) The Uttar Pradesh government has moved to significantly ease industrial land acquisition procedures, re-approving an ordinance that eliminates the mandatory requirement to formally convert agricultural land to non-agricultural use before it can be utilised for industrial or commercial purposes.

The decision was taken at a Cabinet meeting held on Monday under the chairmanship of Chief Minister Yogi Adityanath.

What Has Changed

Under Section 80 of the Uttar Pradesh Revenue Code, 2006, it was previously mandatory to obtain a Change of Land Use (CLU) certificate — converting agricultural land to non-agricultural status — before any building plan could be approved for industrial or commercial development. 

The process was widely criticised for being time-consuming and for causing significant delays in industrial activity.

The newly re-approved Ordinance 2026 amends Section 80 to do away with this requirement entirely. Building maps can now be approved without a prior CLU, and once a building plan is sanctioned by the relevant authority, the land use will automatically be deemed to have changed in accordance with the approved plan — eliminating a separate procedural step altogether.

Industry Response

Neeraj Kedia, Federation of Indian Micro and Small & Medium Enterprises (FISME) member and Managing Director, Chakradhar Chemicals Pvt. Ltd., Uttar Pradesh said, “The UP government is taking proactive measures to boost industrial development and economic activity. The decision to remove the CLU requirement for industrial purposes is a welcome step.”

“Given the limited availability of industrial land in Uttar Pradesh, this move is expected to support further growth in the sector, as land—both in terms of cost and availability—remains a major hurdle for developing industries in the state,” he added.

Scope of the Amendment

The simplified framework will apply across areas under development authorities, industrial development authorities, regulated areas, and the Uttar Pradesh Housing and Development Council. The ordinance replaces a previous version that had lapsed.

Context and Intent

The government cited growing demand from domestic and international investors as the primary driver of the change. With increasing industrial investments flowing into the state, the requirement to formally convert land use had become a bottleneck. 

The amendment is intended to improve Ease of Doing Business, accelerate project approvals, and provide a more investor-friendly regulatory environment for industrial development across Uttar Pradesh.

(KNN Bureau)