Odisha government cancels 267 land allotments for non-performance. Minister Sampad Swain warns against land banking as IDCO issues 665 show-cause notices
OdishaPlus Bureau
The Odisha government is no longer willing to tolerate the wastage of industrial resources. They are implementing strict measures against companies that acquired land from the state but failed to utilize it. Industries Minister Sampad Swain informed the State Assembly that the government has cancelled 267 land allotments to date and issued show-cause notices to numerous other entities for not commencing operations.
Most of these companies obtained land through the Industrial Infrastructure Development Corporation (IDCO) and subsequently allowed it to remain unused for years. Out of 914 closed or inactive industries, IDCO has sent show-cause notices to 665. In addition to the 267 cancellations already confirmed, 25 more units are receiving new notices, and another 81 are facing eviction proceedings.
This issue extends beyond mere idle land—it addresses the problem of “land banking.” This practice occurs when a company purchases subsidized land not for development, but to hold it in anticipation of increased value. Such hoarding prevents genuine investors from entering the market, obstructs job creation, and hinders Odisha’s economic growth. The state’s message is unequivocal: land is not meant to gather dust; it is intended for genuine economic endeavors.
Minister Swain has made it clear that there is no tolerance for “non-performance” any longer. The current strategy involves stringent monitoring to ensure that every acre contributes to GDP and job creation. In five cases currently entangled in legal disputes, the government is vigorously pursuing the return of the land as swiftly as possible.
However, the approach extends beyond merely penalizing inactive units. It forms part of a broader initiative to address the “land bank.” By reclaiming unused plots, Odisha aims to establish a reserve ready for new industries—such as green energy, electronics manufacturing, IT, and others seeking to establish operations. The redistribution of this land could rejuvenate industrial estates, ensuring that the state’s infrastructure supports actual producers rather than merely accommodating companies that are sitting on vacant plots.
