ଓଡ଼ିଆ | ENGLISH
ଓଡ଼ିଆ | ENGLISH

Companies sit on industrial land for years after acquiring it

Government data reveals that of the 6,696.601 acres of industrial land allotted across Odisha, 4,593.531 acres is yet to witness the establishment of industries.
Published By : Cassian Baliarsingh | November 3, 2026 2:33 PM
Companies sit on industrial land for years after acquiring it

By Mehboob Mahtab

Jharsuguda: Thousands of acres of government land allotted to industries in Odisha remain unutilised for years, defeating the very purpose of industrialisation, employment generation and economic development. The situation is particularly concerning in Jharsuguda, one of the State's major industrial hubs, where substantial stretches of land reportedly remain locked up despite projects failing to take off.

Government data reveals that of the 6,696.601 acres of industrial land allotted across Odisha, 4,593.531 acres is yet to witness the establishment of industries.

In Jharsuguda, the issue has resurfaced following the recent cancellation of a company's land lease and directions for immediate handover, renewing concerns over prolonged non-utilisation of valuable government land.

One of the major instances involves Orient Paper Mills (OPM) at Brajrajnagar, where around 1,500 acres reportedly remain unutilised. The issue was raised at a public hearing in 2023, following which a high-level review was held at the then Chief Minister's Office. The Collector and IDCO were reportedly directed to examine the land's status and explore opportunities for fresh industrial investments.

However, three years later, there is little publicly available information on how much land has been reclaimed, transferred to IDCO or allotted to new investors.

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The problem also involves other companies. A 2023 report placed before the Assembly identified Brahma Iron (67 acres), Orbit Motors (5.4 acres) and Konark Ispat (113 acres) among units that had failed to commence projects despite receiving land. Although show-cause notices were reportedly issued, the subsequent status of the allotted 185.4 acres remains unclear.

A CAG performance audit report published in September 2026 further exposed systemic shortcomings. It found that 12,393.651 acres allotted between 1981 and 2021 remained unutilised, while another 252.692 acres was diverted for purposes other than those originally approved. The audit also flagged inadequate monitoring and inspection mechanisms.

Against this backdrop, demands are growing for the Jharsuguda administration to conduct a comprehensive survey and publish a white paper detailing company-wise allotments, actual utilisation and vacant land.

The larger question is whether industrialisation should be measured by land allotments and investment announcements or by actual production, employment and productive utilisation of public resources.