In a significant policy shift, the Odisha government has announced strict measures to ensure that land acquisition for projects aligns closely with actual needs. The Revenue and Disaster Management Department, which oversees land matters, has called on departments to scrutinize acquisition requests to avoid surplus and underutilized land. This move could impact industrial projects in the state, especially as the government grapples with historical issues of excessive land requisition and low utilization rates.
Additional Chief Secretary Deoranjan Kumar Singh emphasized acquiring only the minimum land necessary for projects, aiming to curb land conflicts and disputes. “It is observed that the quantum of land requisitioned often exceeds what is genuinely required, leaving significant portions idle and sparking discontent among landowners. This approach contravenes the purpose of the Land Acquisition Act and leads to prolonged litigation,” Mr. Singh noted.
Lingering Issues and Historical Controversies
Odisha’s land acquisition history is marked by high-profile conflicts, with industrial projects facing prolonged disputes and public opposition. In 1996, the state acquired 3,000 acres in Gopalpur for Tata Steel’s proposed steel plant, yet less than 10% of this land has been utilized. The land acquisition for Tata’s project in 2006 also led to a clash that resulted in the tragic death of 14 protestors, underscoring the strong resistance to large-scale acquisitions.
Similarly, intense opposition in Jagatsinghpur was a significant factor in South Korean steel giant POSCO’s decision to withdraw its plans for a mega steel plant, while ArcelorMittal’s proposed project in Keonjhar faced public resistance in 2013. Vedanta’s proposed university in Puri in 2006, with a land request of 15,000 acres, also led to delays and legal challenges due to public concerns over excessive land requirements.
Industrial Impact: Slower Approvals, Leaner Land Allocations
For Odisha’s industrial sector, this new directive implies longer planning stages and a need for precise land-use proposals, which could slow down the pace of industrial approvals. Major industries—especially those requiring large-scale acquisitions—may now face more stringent scrutiny, potentially delaying project timelines as they justify their land needs. This could impact sectors such as steel, mining, and energy, which rely on large parcels of land.
The new policy also introduces uncertainties for industries already planning expansions or new facilities, as they may need to revise land requirements to align with stricter government expectations. While the government’s stance prioritizes responsible land use and curbs excessive requisition, it adds a layer of complexity to the investment process, potentially affecting Odisha’s industrial competitiveness relative to other states.
A Balanced Path to Development
The policy could foster a more equitable development model, creating a stable foundation for projects that balance industrial goals with landowner rights. Industry stakeholders may find the need to engage in collaborative planning with local communities, aligning project plans more closely with community expectations and environmental concerns.
In Odisha’s push for sustainable growth, this policy shift represents a pivotal moment that could redefine land acquisition practices across sectors. By setting higher standards for land accountability, Odisha aims to encourage responsible investment and align its industrial ambitions with a sustainable approach to land management—ensuring that projects proceed with reduced friction and stronger local support.
Prasanta Patnaik