Revenue Minister Jagat Singh Negi on Tuesday said the state will simplify Section 118 of the Himachal Pradesh Tenancy and Land Reforms Act, 1972, to encourage business activity, as he introduced an amendment bill in the Assembly.

Section 118 restricts non-agriculturists and non-Himachalis from buying or transferring agricultural land without government permission. Under the proposed change, cooperative societies with 100 per cent farmer membership would no longer require approval under Section 118.

According to the bill, the exemption is expected to speed up employment generation and help establish new enterprises across the state.

The government says the move will benefit more than 2 million people associated with cooperative societies.

The draft amendment notes that easing the rule for farmer-run cooperatives will raise per capita income and strengthen the state economy.

Furthermore, fully constructed buildings in rural areas will be allowed to be leased for short periods, and leases up to 10 years will also be permitted in these regions.

The proposed amendment will exempt individuals from needing Section 118 clearances when purchasing buildings or flats constructed by the Himachal Pradesh Housing and Urban Development Authority (HIMUDA) or by private builders.

This exemption will also apply to subsequent purchasers of these buildings, allowing non-farmers to buy fully constructed properties.

Amid speculations that the Congress government is attempting to alter Section 118 of the Himachal Pradesh Tenancy and Land Reforms Act of 1972, BJP leaders have made it clear that they will oppose the proposed changes.