Odisha Government Cancels Vedanta’s 28.8-Acre Land Lease in Jharsuguda Over Non-Utilisation

The Odisha government has cancelled the lease of 28.8 acres of government land allotted to Vedanta Ltd in Panchapada village of Jharsuguda district due to prolonged non-utilisation. The decision was taken after multiple inspections found that the land remained largely vacant, with only a boundary wall constructed and no significant industrial infrastructure in place.

The land was originally allotted to Vedanta Aluminium Ltd by the Odisha Industrial Infrastructure Development Corporation (IDCO) in 2013. Following a change in the company’s name, the lease was transferred to Vedanta Ltd.

IDCO Cancels Land Allotment

An inspection conducted by the Accountant General (Audit-I), Odisha, on April 16, 2025, highlighted the non-utilisation of the land. Subsequent inspections by district and IDCO officials also confirmed the absence of substantial construction or industrial activity.

Before cancelling the lease, IDCO issued a show-cause notice to Vedanta on April 9, seeking an explanation. The company stated that the land was reserved for future expansion, ancillary facilities, industrial support infrastructure, welfare projects and healthcare-related development.

However, officials found that the company had failed to comply with the construction timelines specified in the original allotment and lease conditions.

Vedanta has now been directed to immediately hand over vacant possession of the land. It has also been prohibited from creating third-party interests or undertaking further activities on the property.

Vedanta Says Land Loan Repaid

Vedanta stated that loans secured against the leased land had been fully repaid. A company spokesperson also said that it had expressed interest in developing community-oriented infrastructure, including a comprehensive healthcare facility.

However, the government maintained that industrial land cannot remain unused indefinitely. Under the applicable allotment conditions, land remaining unutilised beyond the permitted period can be reclaimed.

267 Industrial Land Allotments Cancelled

The action is part of Odisha’s wider drive to reclaim unused industrial land. Since 2016, the state government has cancelled 267 land allotments, while show-cause notices have been issued to 398 other industrial units.

The latest decision comes amid Vedanta’s proposed investment plans worth around Rs 1 lakh crore in Odisha, including an aluminium smelter in Dhenkanal, an alumina refinery in Rayagada and expansion of its existing Jharsuguda operations.