Bhubaneswar: Odisha Industrial Infrastructure Development Corporation (Idco) has issued showcause notices to more than 250 entrepreneurs who were allotted acres in industrial estates at a concessional rate but violated the approved land-use policy.
On Monday, The Telegraph carried a detailed report showing how plots taken from Idco for industrial purposes had been converted into kalyan mandaps, girls hostels, motors spares godowns, educational institutes, cement godowns and car showrooms.
Idco chairman-cum-managing director Vishal Dev today claimed that some of these plots had been cancelled but he did not give the exact number.
After Comptroller and Auditor General (CAG) pointed out there was violation of land use policy, it was revealed that 521 industrial units that were allotted 219.732 acres in various industrial estates at concessional rates had used the land for other purposes.
Idco, which was so far silent on the issue, today claimed that they had made a survey of the misutilisation of land in the Chandaka and Mancheswar Industrial estates.
While in one case a plot allotted for jam and pickle factory has been converted into a hotel, in another the land meant for a general fabrication and steel furniture making unit has been turned to a plywood godown.
The land meant for statue making unit has been converted into to paper godown.
Dev, however, said: “We have issued showcause notices to a number of entrepreneurs and also cancelled some of the plots. Process has also been initiated to cancel the lease of plots taken by other entrepreneurs. We will give you the details within next two or three days.”
According to the law, if an entrepreneur takes land in an industrial estate for setting up a small and medium scale unit, it has to be installed within two years.
Significantly, land taken more than a decade ago has not been used for industrial purposes.
In Mancheswar industrial estate, five plots have been allotted to set up BPOs, but all of them have turned into vehicle showrooms.
To create a congenial industrial atmosphere, Idco also allotted three plots for setting up broiler meat processing units that have been converted into godowns orhouses.
Plots meant for cinema have also been converted into cement godowns. A plot allotted for manufacturing synthetic fishing nets have been converted into biscuit godowns.
Of the 521 plots allotted to entrepreneurs, 20 units were used to set up hostels, four for hotels, 188 for godowns and another 144 were sublet for other purposes. Another 165 plots were equally misused.
Of the 521 plots in the industrial estates of city, 222 plots have been diverted for other purposes in Mancheswar industrial estate, 26 at Rasulgarh and 18 plots at Chandaka and 16 plots in Bhagabanpur industrial area.
However, Idco decided to be lenient with those who have taken land for industrial purposes but converted into Industrial Training Institutes (IITs), MBA and other technical colleges.
“These technical colleges also help industrial growth,” said an Idco official.