Odisha Developers Urge Land Reform to Boost Urban Development
Leading real estate developers in Odisha have issued a strong appeal to the state government, calling for comprehensive reforms to the existing land conversion framework. They argue that the current system, which has remained largely unchanged for decades, is causing significant project delays, escalating costs, and impeding urban development across the state.
Outdated System Hindering Progress
The developers highlight that while other major Indian states like Maharashtra and Karnataka have modernized their processes, Odisha continues to operate under a cumbersome, permission-heavy system. This involves navigating multiple authorities, enduring lengthy scrutiny periods, and dealing with inconsistent interpretations of land records. According to industry representatives, this often extends project timelines by several months, creating unnecessary bottlenecks.
"The situation in Odisha is completely different," developers stated, emphasizing the contrast with progressive states. In Karnataka's greater Bengaluru area, land conversion is now treated as automatic during building plan approval, while Maharashtra has eliminated non-agricultural (NA) conversion approvals altogether. These reforms demonstrate how streamlined processes can accelerate planned urban development.
Complex Permission Layers and Additional Hurdles
Pradipta Kumar Biswasroy, chairman of the Odisha Developers' Federation (ODFED), detailed the challenges. Developers must secure clearances from bodies like the Bhubaneswar Development Authority and then separately obtain NA conversion orders from the revenue department. This is accompanied by mandatory on-site verification for environmental compliance, adding another layer of complexity.
Projects in districts such as Khurda and Puri face additional obstacles due to terrain issues and record-related complexities. Outdated or unclear land records, coupled with frequent regulatory changes, introduce further uncertainty into the process. The conversion from leasehold to freehold land also complicates access to bank loans and impacts property transactions negatively.
Calls for Integration and Streamlining
Umesh Pattnaik, general secretary of ODFED, pointed out the redundancy in the current system. "Once land use is determined under the master plan by the development authority, another round of clearances from tehsildars and district offices only creates redundant layers," he explained. Developers are advocating for the integration of land conversion with the building plan approval system to simplify and expedite the process.
Potential Benefits of Reform
Industry bodies believe that adopting reforms similar to those in Maharashtra and Karnataka could position Odisha as an investor-friendly market. This is particularly crucial as the state's cities expand rapidly. A more streamlined system would lead to:
- Faster project completion times
- Greater transparency in regulatory processes
- A more predictable environment for developers and investors
The developers' demand underscores the urgent need for policy alignment with contemporary urban development practices. By modernizing its land conversion framework, Odisha could unlock significant economic potential and enhance its urban infrastructure, keeping pace with other progressive states in India.
