Idco step to cancel land leases draws flak from industry bodies

The decision of the Odisha Industrial Infrastructure Development Corporation (Idco) to cancel the lease deeds of the land lying idle in industrial estates has drawn flak from the industry bodies the state.

Idco has issued showcause notices to more than 250 entrepreneurs in the Chandaka and Mancheswar industrial estates on the outskirt of Bhubaneswar. These entrepreneurs, who were allotted plots in industrial estates at a concessional rate, were alleged to have violated the approved land-use plan. After conducting a survey, Idco has found 200 plots to be lying idle in the industrial estates.

"Actions have been taken against the entrepreneurs without doing a proper scrutiny as some industrial units on these plots have gone into production. Before taking any decision, the matter must be placed before a committee comprising of minister, secretary and industry associations," said Aswini Panda, President, Odisha Small-Scale Industries Association (OSSIA).

Panda, however, said that the lease deed of land lying unutilised for last three to four years should be cancelled, but not of those who have been running units for last 20-25 years on the allotted land and are presently going through the financial crisis.

Expressing similar concern, Smarajit Mohanty, president, District Small Scale Industries Association (DSSIA) of undivided Puri district, comprising SSI units of Khurda, Puri and Nayagarh, said the land leases of those entrepreneurs should not be cancelled who are unable to run their units because of the delay in providing infrastructure facilities by Idco.

The industries bodies have threatened to go on strike on the issue.

"Plots lying vacant for more than 15 years should be cancelled. In most of the cases cancellations are not justified because of delay in establishment of the units has been caused by inability of the government to provide them requisite facilities," said Ramesh Mohapatra, president, Utkal Chamber of Commerce and Industry(UCCI).

The lapses on the part of the government included delay in granting pollution clearances, handing over of land possession, provision of power connectivity, sanction of bank loans and getting mortgage right etc.

In such cases, Idco must review its decision and give them another chance, he added.

According to Comptroller and Auditor General of India (CAG) report, 521 industrial units, which were allotted 219.732 acre land valued at Rs 127.55 crore at Idco rate in the industrial estates, were utilising the land for purposes other than those for which they were allotted. Of these, hostels are running on 20 plots, hotels have come up on four plots, 188 plots are being used for godowns while another 144 have been sublet for other purposes.