Bengal budget: State to re-examine Urban Land Ceiling Act
Times of India | 23 June 2026
Kolkata: In the state budget presented on Monday, Bengal govt has announced it will “re-examine” the Urban Land (Ceiling and Regulation) Act, 1976, a move aimed at easing restrictions on developable urban land and attracting fresh investment.
Presenting the budget, state finance minister Swapan Dasgupta said Bengal remains the only major state in India where the Act’s provisions continue to be in force, creating hurdles for large-scale industrial and infrastructure projects.
“I hereby announce that the Urban Land (Ceiling and Regulation) Act, 1976, will be re-examined to unlock the potential of developable land, attract investments and fuel economic growth,” the minister said while presenting the budget.
The move signals the govt’s intent to make it easier to assemble contiguous land parcels for industrial, commercial and infrastructure development, while encouraging greater private investment.
Under the existing framework, holding ceiling-excess vacant land in urban agglomerations such as Kolkata has remained heavily restricted. Developers and landholders have also been required to obtain special NOCs for site development, adding to procedural delays.
Industry bodies and investors have long argued that restrictions on urban land holdings have limited the availability of large land parcels needed for major projects.
Welcoming the announcement, CREDAI West Bengal president Sushil Mohta said, “We expect that rationalising the urban land ceiling framework and a new township policy in line with Gujarat or Maharashtra can further support access to larger land parcels and enable more integrated, planned development.”