Odisha State Government is creating a 1.2 lakh acre land bank across the state which will be allocated for industrial use and purposes. The land bank is being created to cut red tape and pre-emptively settle local issues related to the land acquisition process.
Lessons learnt from POSCO Fiasco:
Odisha Government is creating the land bank in order to avoid another POSCO-like fiasco.
- In 2005, South Korean Company, POSCO, signed a memorandum of understanding with the Odisha government to set up a 12-million-tonne-capacity steel project in Jagatsinghpur district.
- Without having any land at its disposal, Odisha Government committed to provide nearly 4000 acres of land for this purpose.
- Odisha Government faced tremendous resistance from betel farmers whose land was allocated to POSCO for the steel project. Firstly on account of public resistance over land acquisition and later due to regulatory hurdles, the project never started.
- In the beginning of 2017, POSCO exited from the deal, thereby eliminating hopes for huge investments and employment opportunities in the state.
Overview of Odisha Government’s Land bank for Industrial Use:
- Size of Land Bank: So far the size of the land bank has reached 57,655 acres. Odisha State Government has also identified other areas across the state which will be brought under this land bank. Another 122,428 acres of land is being considered to be brought under the land bank.
- Allocation of Land from Land Bank: Odisha industry department is looking for investment in various sectors including steel, aluminium, agro and food processing based units, apparel, IT and plastic units by allocating the patches of land to interested companies. This investment will ultimately create employment opportunities in and around land bank areas.
- Plug – and – Play Model: The state government will not just acquire the land but will also develop necessary facilities such as water, power, roads before allocating it to companies. The land will also have all the necessary clearances. The company to which land will be allocated will only have to make the payment of base premium upfront for the land and the annual rent for lease.
Quick Facts about Odisha:
- Capital: Bhubaneswar
- Current Chief Minister: Naveen Patnaik
- Current Governor: S.C. Jamir