Idco hikes fee to tweak land use
Idco has fixed different rates for change in activity from the industrial sector to social infrastructure projects such as hotels, multiplex and educational institutions
Dec 11, 2014
Source : The Telegraph

 

Bhubaneswar: The Odisha Industrial Infrastructure Development Corporation (Idco) has decided to regularise land that had been allotted for industries but was being used for other purposes.

Idco has fixed different rates for change in activity from the industrial sector to social infrastructure projects such as hotels, multiplex and educational institutions.

The norm makes it clear that if people want to transfer land for educational institutions, hospitals or health services, they would have to pay 1.5 times the prevailing market rate. To transfer the land for hotels, multiplex, leisure and entertainment establishments, Idco has categorised the users by diving them into four categories - A (developed), B (developing), C (semi-developed) and D (underdeveloped).

In zone A, outside the Bhubaneswar Municipal Corporation limits, the industrialists will have to pay two times the prevailing land rate to use it for other purposes. But, in the corporation limits, the plot owners are required to pay 2.5 times of the prevailing land rate. In the zone B areas, one has to pay 1.5 times the market rate, but in the C and D zones, they will have to pay the regular market rate.

Chief general manager of the Micro Small and Medium Enterprises, Idco, Parameswar Nayak said: "Educational institutions, hospitals and health services, hotels, multiplex, leisure and entertainment establishments helped industrial growth. They have come under the ambit of the Industrial Resolution Policy, 2007. The board of directors, at its meeting in October, decided to allow industries to use the land for other purposes. However, they will have to pay the price following the prevailing rate of Idco."

The decision follows an audit report that land, taken for setting up industries, were being used for running kalyan mandaps, hostels, godowns for car spare parts, educational institutions, cement godowns and car showrooms in the industrial estates across the state.

In the city, 521 industrial units were allotted 219.732 acres in four industrial estates - Rasulgarh, Mancheshwar, Chandaka and Bhagabanpur - at concessional rates.

A physical verification by the authorities had stated that of the 521 plots, 20 were used to set up hostels, four for hotels, 188 for godowns and another 144 were given on rent for other purposes. Another 165 plots were equally misused.

The allottees, however, have expressed their reservations on Idco's decision and are critical of the move. "For conversion, the authorities should charge nominal fees and not 2.5 times the current price. The decision is an unfair one and will affect business considerably," said an industrialist, who did not want to be named.

Utkal Chamber of Commerce president Ramesh Mohapatra, however, said: "This will stop unscrupulous elements to take undue benefit from the scheme. Only those, who are serious about setting up ventures, will benefit. In any case, the land price of Idco is much less as compared to the market price. In Bhubaneswar, Idco charges Rs 75 lakh per acre. But, the actual market price will be much more."

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