The Uttarakhand Cabinet has cleared a significant set of decisions that reshape the state’s tourism, land management and urban development framework. The most debated move is the approval to allow resorts on agricultural land without requiring formal land-use conversion, a change the government says will strengthen rural tourism and create new income streams for landholders.
Briefing the media after the Cabinet meeting, Chief Minister’s Secretary Shailesh Bagoli said the state aims to remove “procedural delays that discourage investment in tourism infrastructure,” adding that the new provision will allow agricultural land to be utilised “similar to eco-resorts, without altering ownership rules.”
Bagoli also confirmed that the approach-road width norms have been revised. The minimum standard for resort access roads is now six metres in hilly regions and nine metres in plains. According to the state government, the previous requirements were too rigid for small and medium tourism enterprises, especially in interior hill areas where road expansion is difficult.
Government officials insist the initiative will allow local farmers to monetise their land while ensuring that ownership continues to remain with residents, in accordance with the new Uttarakhand Land Law. “This is about utilisation, not ownership,” a senior official said. “Agricultural land will remain protected, and local residents will remain the landowners.”
Opposition Flags Contradiction with Land Law, 2025
The decision has drawn criticism from opposition parties and land-rights groups because it intersects with the Uttarakhand Land Law, 2025, which restricts the sale of agricultural land to outsiders in 11 of the state’s 13 hill districts. Critics argue that allowing commercial construction on agricultural land may undermine the law’s intent.
Opposition leaders have claimed that the government is opening the door to “indirect commercialisation” of protected hill land. Some senior bureaucrats acknowledged that clarity may be needed on certain legal overlaps, but the government maintains that the reform is consistent with its rural tourism strategy. “The guiding principle remains the same: local land remains with local people,” Bagoli said, emphasising that the purpose is to expand economic opportunity, not dilute land protections.
Compensation Framework Updated for Power Transmission Projects
In another major decision, the Cabinet approved the adoption of the Ministry of Power’s guidelines for resolving Right of Way disputes related to the construction of power transmission lines. Under the new structure, PITCUL will provide enhanced compensation to landowners for inter-state transmission lines of 66 kV and above.
The compensation for the area directly occupied by transmission towers will now be twice the circle rate. For agricultural fields lying beneath transmission lines, compensation will be provided at 30 percent of the circle rate in rural areas, 45 percent in semi-urban zones and 60 percent in urban regions. Where a significant gap exists between circle and market rates, a District Magistrate–led committee, including a landowner representative, will determine the revised amount.
Urban Development Reforms and FAR Incentives Approved
The Cabinet also approved reforms under the Centre’s Scheme for Special Assistance to States for Capital Investment (SASCI) 2025-26. These include additional FAR incentives for green buildings and amendments to state construction norms related to road width, setbacks, hotel-height rules, stilt parking height and other planning parameters.
The government says the changes will bring uniformity to building and development bylaws across Uttarakhand. The Cabinet further cleared the Uttarakhand Town Planning Scheme (Implementation) Rules, 2025, and the Uttarakhand Land Pooling Scheme (Implementation) Rules, 2025, both intended to streamline land procurement and ensure planned urban expansion.
Naini Saini Airport Transfer Formalised
The Cabinet also formalised the transfer of the state-owned Naini Saini Airport in Pithoragarh to the Airport Authority of India. The airport holds strategic importance due to its proximity to the Indo-China border. According to the government, the transfer will support regional aviation plans and boost connectivity in the border district.
Institutional Upgrade for Aromatic Plant Research
The Centre for Aromatic Plants has been renamed as the Institute of Perfumery and Aromatic Research, reflecting the state’s effort to expand research in aroma-based industries and natural extract development.
Shift in University Recruitment Model
The Cabinet also approved a change in faculty recruitment procedures at Uttarakhand Technical University. Hiring will now be conducted at the university level, aligning it with the recruitment model followed by other state universities.
Government Says Decisions Reflect Balanced Development
A senior official described the latest Cabinet decisions as a combined effort to “balance development, regulation and long-term sustainability.” While the move to allow resorts on agricultural land has generated debate, the government maintains that it aligns with Uttarakhand’s strategy to diversify rural incomes and strengthen tourism beyond the traditional pilgrimage season.
