Idco to regularize encroached land on penalty payment

The amendment comes after CAG pulled up Idco for showing undue favour to an education institution

The Odisha Industrial Infrastructure Development Corporation (Idco), which was recently flayed by the Comptroller and Auditor General (CAG) for allegedly flouting land allotment norms, has taken a host of decisions that are likely to benefit the erring industrial units.

The nodal land acquisition arm of the state government, in its 99th meeting of the Board of Directors, has allowed regularization of encroached land, change of activity from industrial sectors to social infrastructure and other allied projects, regularization of change of activities with imposition of penalty, among others.

In circular issued to all the industry associations, Idco has decided that the encroachment of land beyond 25 per cent will be regularized by paying three times of industrial land price plus occupation charges in conformity with the conditions specified by High Level Land Allotment Committee (HLLAC), where there is no encroachment of public utility like road and drains.

The amendment in encroachment rules comes after CAG pulled up Idco for showing undue favour to an education institution.

In another circular issued by Idco, the change of activity from industrial sector to social infrastructure and other allied projects like hotels, multiplex and education institution have been allowed in industrial estates in exchange of a fee.

Educational institutions, hospitals and health services, which have come up in industrial areas, can get relief by paying 1.5 times the prevailing land rate.

Similarly, for the hotels, multiplexes, leisure and entertainment projects, the land cost or transfer fee is fixed at the same rate as applicable to industries at the prevailing land rate in Zones C and D as specified in the IPR (industrial policy resolutions)-2007.

In case of Zone B, the land cost has been decided at 1.5 times of prevailing land rate of the industries. In case of Zone A, except Bhubaneswar Municipal Corporation areas, the change of activity to hotels, multiplex and entertainment projects is allowed at two times of the prevailing land rate for industries. The fee payable for same deviation in BMC area will be 2.5 times of the prevailing land rate.

For change of activity on allotted land without the approval of Idco, the lease holders have to pay a penalty of Rs 2,000 for micro industrial units, Rs 5000 for small scale units and Rs 10,000 for medium industries for regularization.

The regularization is allowed only from one industrial activity to another industrial activity, not for non-industrial activities.

In case of mutual transfers of land by the lessees, without intimating Idco, the penalty will be double the normal transfer fee or the differential land premium between initial land rate at which the land was allotted and the prevailing land rate, whichever is higher, the Idco board decided.