Defence firm gets 1,500 acres in Maharashtra's Ahilyanagar sans tender at low lease

Maharashtra has approved a 49-year lease of 1,500 acres of agricultural land in Ahilyanagar to Nibe Group without an e-tender, at ₹50,000 per acre annually.

The state government has bypassed the bidding process to lease 1,500 acres of agricultural land in Ahilyanagar to a private firm. The vast tract has been leased at ₹50,000 per acre per year, which works to around ₹4,167 per month per acre to Mumbai-headquartered Nibe Group of companies, on condition of a 3% increase in lease rent annually.

Maharashtra revenue minister Chandrashekhar Bawankule. The Maharashtra government has leased 1,500 acres of agricultural land in Ahilyanagar to Nibe Group for a proposed defence-related manufacturing project. (PTI)

Cabinet panel clears 1,500-acre land lease

The allotment was approved by a cabinet sub-committee headed by state revenue minister Chandrashekhar Bawankule on June 23, 2026, and a government resolution (GR) was issued by the revenue department on Thursday formalising the decision.

According to revenue officials, the company is slated to manufacture defence-related products, and hence details of the project could not be disclosed. “The firm has several work orders from the defence ministry,” a senior revenue official said. In fact, defence minister Rajnath Singh inaugurated Nibe Group’s defence manufacturing complex and ammunition park in Shirdi – less than 100 kilometers from Ahilyanagar -- on May 23, 2026.

The land tract belongs to the Maharashtra State Farming Corporation Limited (MSFCL), which has also approved the proposal to lease out the parcel. MSFCL was established to cultivate and manage 85,564 acres of land acquired by the state under the Maharashtra Agricultural Land (Ceiling on Holdings) Act, 1961.

Land to be handed over after standing crops are harvested

As 900 acres of the 1,500-acre tract is currently under cultivation with standing crops, the government has directed MSFCL to hand over the land to the company after the crops have been harvested, stated the GR.

On the allotment, the GR states: “The government hereby grants approval to make available for non-agricultural use 1,500 acres of land at Haregaon village, Ahilyanagar, to Nibe Group Company, Mumbai, without following the e-tender process.”

49-year lease, with option for another 49 years

The company has also been exempted from paying a security deposit, as it has agreed to pay three years’ lease rent in advance. “The land shall initially be leased for 49 years. If there is no violation of any of the terms and conditions, the lease may be renewed for a further period of up to 49 years, subject to the terms, conditions and policy of the MSFCL prevailing at that time,” the GR stated.

The GR further stated that if the MSFCL decides to sell the land in the future, priority will be given to the Nibe Group. However, the company will be required to use the land only for the purpose for which it has been allotted, which must commence within two years of taking possession.

Government can reclaim land if lease terms are violated

The land cannot be transferred, pledged or mortgaged without prior approval of the state government. In the event of any violation of the terms and conditions of the approval order, the government will be entitled to reclaim the land, with the company having no right to claim compensation.

HT’s attempts to reach the revenue minister and MSFCL managing director Manjiri Manolkar through calls and text messages did not elicit a response.

According to Nibe Group website, the company develops satellite and earth-observation solutions for real-time intelligence, counter-UAS and air-combat systems, high-performance naval ammunition, technologies for advanced defence operations, rocket launch systems and defence electronics, among other products.