The Odisha government has officially terminated Vedanta’s lease for 28.8 acres of industrial land located in Panchapada village, Jharsuguda district, due to prolonged inactivity and non-compliance with the conditions of the land allotment. Inspections revealed that the site was largely vacant, with only a boundary wall present.
On October 27, the Industrial Infrastructure Development Corporation (Idco) issued the cancellation order after confirming that the land had not been developed since it was allotted.
Originally granted to Vedanta Aluminium Ltd in 2013, the lease transitioned to Vedanta Ltd following a corporate name change. Reports indicate that the inspections showed no permanent industrial structures or significant construction on the site.
An audit by the Accountant General (Audit-I) of Odisha on April 16, 2025, raised concerns that led Idco’s officials to conduct further checks on the property. Prior to this, Idco had issued a show-cause notice on April 9, requesting an explanation from Vedanta for its failure to utilize the land.
Vedanta argued that the location was earmarked for future expansion, including the development of ancillary facilities, industrial infrastructure, and community welfare projects. However, subsequent investigations confirmed that the land had remained unused.
According to the allotment terms, any industrial land not utilized for a span of three years can be reclaimed by the government. Officials cited violations of Clause 19 of the allotment letter and Clause 43 of the lease deed, both of which mandate construction within a specified timeframe.
A spokesperson for Vedanta stated that the company had repaid loans secured against the leased property and expressed interest in creating community-focused infrastructure, such as a comprehensive healthcare facility. Discussions with Idco regarding this proposal are currently ongoing.
In the meantime, the authorities have instructed Vedanta to promptly return possession of the unoccupied land. The company has also been barred from establishing third-party interests or conducting any further construction on the site.
Idco officials are now tasked with initiating the physical resumption of the land and updating land records in accordance with established procedures. The collector of Jharsuguda had previously suggested reclaiming the property after verifying its status.
The Odisha government emphasizes that industrial land is a vital public resource that should not be left unused for extended periods.
