Odisha govt to reclaim unused industrial land; Revenue Minister issues strict directive

In a significant policy directive aimed at promoting accountability and efficient land use, Odisha Revenue Minister Suresh Pujari on Wednesday announced that the Odisha government will initiate a large-scale exercise to reclaim land from industries that have failed to utilize plots allotted to them for industrial development. 

The minister stated that this move is a step towards ensuring transparency, responsible land use, and equitable opportunities for genuine investors who are ready to set up industries and create employment.

The announcement comes amid growing concerns over the underutilization and encroachment of government land by certain industrial houses, many of whom had acquired large tracts from the state government years ago but have made little to no progress in developing the land for the intended purpose. 

According to the Minister, the government has received several reports of such inactive units and is now moving to address the issue systematically.

"Land is a valuable and limited resource. Industries that have taken land from the government but have failed to establish any industrial activity will now have to return those plots. Similarly, companies that have acquired excess land beyond their requirement and are not using it effectively will also be required to surrender the unused portions,” said Pujari.

Collectors Directed To Submit Report

To enforce this policy, the Revenue Minister has instructed all district Collectors across the state to conduct a comprehensive review of land allotted to industrial units in their respective jurisdictions. The Collectors have been given a deadline of two months to identify such cases and submit a detailed report, the Minister informed.

The list will include industries that have not started operations even after several years of land allotment, as well as those that are using only a fraction of the land granted.

“This is not a punitive measure, but a corrective one,” Pujari clarified. “We are not against industries. In fact, we are encouraging investment and economic development. However, we cannot allow land to lie idle when many serious investors are waiting for opportunities.”

The decision is expected to have a wide-ranging impact on Odisha’s industrial policy. Over the years, several companies have acquired land during investment drives and MoUs, especially in mineral-rich regions of the state, but failed to translate those commitments into actual industrial units. Many of these projects remain on paper, while the land remains unused, denying opportunities to more dynamic entrepreneurs.

Officials in the Department of Revenue and Disaster Management stated that the reclaimed land will be redirected towards new investment proposals, MSMEs, and startups, particularly those in emerging sectors like renewable energy, food processing, electronics, and IT services. The goal is to make land available to those who are genuinely interested in building sustainable businesses and generating employment.

The state government also acknowledged the need to streamline the land allotment and monitoring process, ensuring that future allocations are linked with clearly defined timelines and performance indicators. Periodic reviews may be institutionalized to check on the status of land utilization by allottees.

Minister Pujari concluded by reiterating the government’s commitment to balanced industrial development. “We want Odisha to emerge as a hub for responsible and productive industrialization. Every acre of land must contribute to the growth of our economy, the welfare of our people, and the realization of our development goals.”

As this policy is rolled out, industries in Odisha that have yet to act on their commitments may now be compelled to reassess their plans or risk losing their land. The move is widely seen as a bold and much-needed step toward improving land governance and unlocking the economic potential of unused land assets.

“We have found that several private establishments in Odisha have taken surplus land for setting up industries and have not been able to utilise it for the last 10 to 15 years. The Revenue department has asked direct Collectors and other officials to identify such industries which have not been able to set up units or where there is misuse of such government land,” said Pujari.

According to Pujari, Odisha has signed 154 new MoUs with an investment of Rs 12 lakh crore. Additionally, there is a possibility of Rs 17 lakh crore investment. How will industries be set up if there is no surplus land available? Hence, big encroachers will be evicted so that new entrepreneurs can come and set up industries.

There is a need for a single department to coordinate with all stakeholders and investors keen to set up their units in Odisha, which can help to achieve the plans of ‘Viksit Odisha’ of the Chief Minister. The Odisha government is reviewing the laws in other parts of the country so as to provide employment to local youths whenever any industry is being set up in the state. What laws can be framed, and we are exploring all aspects to end unemployment, said Pujari.