Odisha clears air on land mortgage row
Odisha Government gives permission to Odisha Industrial Infrastructure Corporation (Idco) to approve the creation of mortgage to the industries.
The state government has come out with a notification saying that Odisha Industrial Infrastructure Corporation (Idco) can give permission to industries for creation of mortgage. It comes as a relief to industries which were finding it hard to raise loans, as land mortgage was not permitted.
The revenue & disaster management department has issued notification, laying down conditions for Idco to grant no objection certificate (NOC) for mortgage of the allotted land. Idco will issue permission for mortgage only for the purpose of financing the project for which the land has been allotted. The sanctioned loan will be utilized only for the project on the leased land. This will be ensured by the financial institution providing the loan.
However, Comptroller & Auditor General of India (CAG) has questioned the authority of Idco to allow such mortgage.
CAG, Comptroller & Auditor General, Idco, Loan, mortgage to the industries, Odisha government, Odisha Industrial Infrastructure Corporation
