Bhubaneswar: Industry leaders in Odisha are once again bringing the issue of freehold status for industrial land to the forefront. In a recent conference, prominent figures including Shri Mihir Kanungo, President of OYEA, and Shri Debabrata Das, Past Secretary of UCCIL, met with Dr. Prabodh Mohanty, the current President of UCCIL, to discuss key matters impacting the industrial sector, with a primary focus on the conversion of industrial holdings from leasehold to freehold.
This demand for freehold status is a long-standing one from micro, small, and medium enterprises (MSMEs) and other industrial associations in the state. The current leasehold system, where land is allotted for a fixed period, is often cited as a significant hurdle for businesses. Industrialists argue that it complicates financing, as banks are more hesitant to offer loans against property that is not permanently owned. Furthermore, the leasehold system creates challenges for ownership transfer and long-term planning, discouraging substantial, generational investment.
The Odisha government has taken steps in the past to address land-related issues. A notification from October 2023 outlined the principles for converting residential leasehold land to freehold status in areas managed by the Bhubaneswar Development Authority (BDA) and Odisha State Housing Board (OSHB). While this was a positive step, it did not fully address the concerns of industrial plot holders. The government has also been focused on reclaiming unused industrial land to promote new investment.
Industrial bodies are now pushing for a similar, comprehensive policy specifically for industrial plots. The call is for a transparent and streamlined process that would allow for the conversion of leasehold plots to freehold, often with the payment of a reasonable conversion fee. Such a policy would align Odisha with other states that have already implemented similar measures to promote a business-friendly environment. The industry leaders are hopeful that a dedicated policy will encourage greater investment, simplify business operations, and ultimately boost the state’s industrial growth. And Dr.Mohanty, President of UCCIL is taking lead in this regard.