The Odisha government has cancelled the lease of 28.8 acres of land allotted to Vedanta Ltd in Panchapada village of Jharsuguda district, citing prolonged non-utilisation and failure to comply with industrial land-allotment conditions.
As per a report by Business Standard, the Industrial Infrastructure Development Corporation (Idco) issued the cancellation order on Oct 27 after inspections revealed that the property remained largely undeveloped.
The land was initially allotted to Vedanta Aluminium Ltd in 2013 and subsequently leased to Vedanta Ltd following a name change.
As per the report, officials said inspections found only a boundary wall on the property, with no permanent industrial structures or substantial construction.
An audit inspection by the Accountant General (Audit-I), Odisha, on April 16, 2025, prompted further verification by Idco’s land officials.
The corporation had issued a show-cause notice on April 9, seeking an explanation for the company’s failure to utilise the land.
Vedanta maintained that the site was intended for future expansion, ancillary facilities, industrial infrastructure and welfare projects.
However, subsequent verification confirmed that the land remained unused.
Under the allotment conditions, industrial land left unutilised for three years can be reclaimed.
Officials cited violations of Clause 19 of the allotment letter and Clause 43 of the lease deed, which require construction within the prescribed period.
Vedanta said it had repaid the loans secured by mortgaging the leased property.
A company spokesperson also expressed interest in developing community-oriented infrastructure, including a comprehensive healthcare facility.
Discussions with Idco regarding the proposal are underway, according to the company.
Meanwhile, the authorities have directed Vedanta to surrender vacant possession immediately.
The company has also been prohibited from creating third-party interests or undertaking further construction on the land.
Idco officials have been instructed to initiate physical resumption and update land records under the prescribed procedure.
The Jharsuguda collector had earlier recommended reclaiming the property following verification.
The state government maintains that industrial land is a limited public resource and should not remain unused indefinitely.