Odisha: Waiver on land premium for industrial units

The Odisha government is currently in the process of finalising its draft Industrial Policy Resolution (IPR) – 2013. Following this move, the new as well as existing industrial units taking up expansion and modernisation plans may be exempt from paying land premium.

As per the draft IPR, waiver on premium of up to 100% can be availed for units in the micro and small sectors for land area of five acres. Units in the medium sector will also be entitled to 75% exemption on premium for an area not in excess of 25 acres. Moreover, the IPR also provides for 50% waiver in premium for large industrial units for an area not exceeding 500 acres. Further, units falling under the priority and thrust areas can avail of exemption in premium of 50% and 100% respectively on land premium payments.

The components of the thrust sector include ancillary and downstream units as well as industries in the field of agro-processing, automobile components, textiles and apparel. The industries that fall under the priority sector are tourism, information technology, chemicals, bio-technology, sea food processing, handicrafts and pharmaceuticals.

Meanwhile, the IPR suggested that the government consider transferring additional land to the Odisha Industrial Infrastructure Development Corporation (IDCO). This move is expected to ensure hassle-free land allotment as well as facilitate the setting up of new industrial areas, parks and estates. IDCO is incidentally the government’s nodal agency for land acquisition.

Financial support to be provided to IDCO

For the transfer of land, IDCO may either be provided budgetary support or the corporation’s own finances may be utilised for acquiring private land while acquiring them as industrial areas. Moreover, IDCO shall also be entitled to the allotment of government land at concessional rates. Besides, the rehabilitated sick industries may be eligible for incentives as recommended by the State Level Institutional Committee (SLIC), as per the provisions of the IPR.

Similarly, a transferred unit going into commercial production will be eligible to avail all or any of the incentives for the period for which the unit was eligible before the transfer of land. However, these incentives cannot be availed in case there was suspension of production or closure due to sickness of the unit, or for any other similar reason. Moreover, if an industrial unit was seized under Section 29 of the State Financial Corporation Act, 1951, and was sold to a new entrepreneur on sale of assets basis it will be treated as a new unit as per the IPR of 2013.