BHUBANESWAR: Leading real estate developers in Odisha are calling on the state government to reform its land conversion framework, asserting that the current, outdated system causes project delays, increases costs, and hinders urban development, especially as other states modernize their processes.
This appeal comes in light of recent policy changes in Maharashtra and Karnataka, where the need for separate non-agricultural (NA) conversion approvals has been eliminated. In Karnataka, for example, land conversion is now automatically approved during the building plan sanctioning phase, while Maharashtra has completely removed NA permission requirements.
“In Odisha, the scenario is markedly different,” the developers stated, explaining that they are mired in a complex system requiring numerous permissions from various authorities, lengthy reviews, and differing interpretations of land records, often prolonging project timelines by months.
“The reforms seen in other states underline that land conversion is essential for systematic urban development. In contrast, Odisha’s approach remains convoluted and reliant on excessive permissions, deviating from the more streamlined notification-based models seen elsewhere,” said Pradipta Kumar Biswasroy, chairman of the Odisha Developers’ Federation (ODFED).
He further noted that builders must secure approvals from entities such as the Bhubaneswar Development Authority, alongside obtaining NA conversion orders from the revenue department, and mandatory on-site environmental compliance checks.
Projects in regions like Khurda and Puri face additional challenges due to geographical and regulatory complexities. Developers argue that outdated or ambiguous land records coupled with frequent regulatory changes bring added uncertainty. Additionally, converting leasehold land to freehold complicates access to banking loans and impacts real estate transactions.
The developers advocate for integrating land conversion processes with the building plan approval system to simplify this procedure. “After the development authority establishes land use under the master plan, further clearances from tehsildars and district offices only result in unnecessary bureaucratic layers,” stated Umesh Pattnaik, general secretary of ODFED.
Industry stakeholders believe that adopting reforms akin to those in Maharashtra and Karnataka could transform Odisha into a more investor-friendly environment amidst rapid urban expansion. They argue that a more efficient system would lead to swifter project completions, enhanced transparency, and a stable regulatory climate.
