Odisha to take back unutilised industrial land

The Odisha government has decided to take away land allotted to industries, which are just sitting on the property without setting up their projects for years together.

Land leased out for any project will now go back to the government if it remains un-utilized for three years, as per a decision taken by the State Cabinet – a move aimed at weeding out non-serious developers.

“At first we will issue showcause notices to lessees who have not utilized land within three years. If the reply is not found to be satisfactory, the state government will reserve the right to take back the allotted land”, chief secretary B K Patnaik told the media after the Cabinet meet.

To implement this decision, the state government will amend the existing Odisha Government Land Settlement Act-1962.

The government decision is bound to have wide ramifications on the state's industrialization climate where land procurement for new projects is beset with hassles and industries already in possession of land are battling delays in regulatory approvals.

Ramesh Mahapatra, president of city-based Utkal Chamber of Commerce & Industry (UCCI) said, “If the government wants to ensure that land is developed in time, then regulatory approvals have to be sped up. For example, environment and forest clearances for projects are long-drawn processes. These approvals have to be obtained in six months to one year. Then, developing the land within three years would not be a problem.”

Mahapatra, however, said no leeway should be given to non-serious players. “The government should take back land from those proponents who are sitting on land despite all regulatory approvals. Their land lease should be cancelled”, he said.