Idco step to cancel land leases draws flak from industry bodies
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
Sep 04, 2014
Source : Business Standard
Odisha Industrial Infrastructure Development Corporation (Idco)


Bhubaneswar: 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.

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.

Latest Realty News

Chief Ministers' Conclave on Housing on Sep 12
Sep 04, 2014
A special comclave of chief ministers is to be held in the national capital Sep 12 to push the agenda of housing for all by 2022, said the National Real Estate Developers' Council (NAREDCO) here
Luxury homes in Pune beat affordable ones in demand
Sep 04, 2014
The city's high-end residential segment has shown a smart 39% rise in capital value in the 2011-14 period — the highest any market has shown in the country, a report by real estate advisory company Cushman & Wakefield has said
134 licences issued to builders in three months before polls
Sep 04, 2014
With the model code of conduct set to kick in anytime, the Haryana state government seems to be in a hurry to issue licences to builders
Govt to compensate evicted slum folk
Sep 04, 2014
The state government will provide Rs 2,000 compensation a month to slum dwellers, who will be evicted to make way for houses to be constructed under Rajiv Awas Yojana (RAY). These houses will be handed over to them
Narayana Murthy invests in realty, Azim Premji to follow suit
Sep 04, 2014
Property has always been a major investment avenue of the rich. Now, some of the people one would expect to focus on enterprising ventures are also looking at rent-yielding property
Law dept to review KIIT land allotment
Sep 04, 2014
The state law department will examine the issue of allotment of 14 acres of land to city based Kalinga Institute of Industrial Technology (KIIT)
Rise of property prices slack in city
Sep 04, 2014
The prices of residential property in Mumbai witnessed a 16 per cent increase over the last three years as compared to 41 per cent and 28 per cent in Bengaluru and Pune, respectively, according to the latest report from global real estate consultant, Cushman & Wakefield
Oriental Bank of Commerce Cuts Interest Rate on Home Loan
Sep 04, 2014
Oriental Bank of Commerce (OBC) on Wednesday cut home loan rate by 0.5 per cent to 10.25 per cent
BDA outsource move to fast track services
Sep 03, 2014
The Bhubaneswar Development Authority (BDA) has decided to outsource its public services, such as building plan approval, allotment of housing properties and issuing of occupancy certificates, to a private party
Govt cancels lease of land given to 200 industries
Sep 03, 2014
The state government has started the process to cancel lease of land given to more than 200 industries in the city because these were not used for the allotted purposes

Latest Realty News Of State

Realty Talk's