Bhubaneswar, Apr 27 (KNN) The Odisha government has decided to cancel all industrial land which was leased out for the development of micro, small and medium enterprises (MSMEs) in the state capital but was not used properly.

The decision was taken in the State Land Allotment Committee chairman earlier this week.

The State Government of Odhisa had formulated a policy in 2009 to deal with the problems and sickness of the State MSMEs. The main objective of the policy was to catalyse the growth of new MSMEs, maximise the expansion of existing MSMEs, and revive them. 

As per the policy, minimum 20 per cent of the land in any industrial estate was to be reserved for the MSMEs. Ten per cent of such land, subject to an upper limit of 200 acres, was to be earmarked for setting up of MSMEs in cluster mode. New industrial units belonging to MSME sector was entitled to capital investment subsidy of 10 per cent of fixed capital investment subject to an upper limit of Rs 8 lakhs only.

As per the policy, Odisha Industrial Infrastructure Development Corporation (IDCO) was chosen as the nodal body to supervise, monitor and upgrade the MSMEs.   Common Facility Centres (CFCs) were set up by Special Purpose Vehicles (SPVs) of MSME clusters which was to be entitled for allotment of land on free of cost basis at locations earmarked for the purpose by IDCO.

The committee reviewed the present position of land allotted in industrial areas of Mancheswar, Rasulgarh and Chandka in the state capital after the state government had earlier received complaints about the leased land being used for other purposes than industrial works.

 IDCO officials were directed to identify non-performing units.

“Utilisation of land should be judged in the perspective of the industrialisation. Besides, it should be assessed whether land allotted has created employment opportunities and whether the land has been put to industrial use or not,” Chairman of State Land Allotment Committee was quoted in a media report as saying.

“The officials of IDCO will assess whether land allotted for industrial use has created employment opportunities and whether the land has been used in other purposes,” he added.

The committee decided that land put to non-industrial use will be taken back by following proper procedure for cancellation of lease. (KNN)