Odisha plans to scrap revenue clearance for urban land-use conversion

Odisha is considering abolishing the separate approval of revenue department clearance for land conversion from agricultural to non-agricultural use in urban regions. The Odisha Land Reforms (Amendment) Bill, 2026 is set to be introduced during the Assembly's monsoon session. This proposed amendment would consolidate the approval process under municipal and development authorities, eliminating the need for landowners to seek individual clearance from local tehsildars.

Presently, landowners in urban areas must obtain building plan and layout permits from municipal bodies, while concurrently applying to the Revenue Department to alter the land's classification under Section 8-A of the Odisha Land Reforms Act, 1960. The existing two-tier approval system leads to delays, additional expenses, and bureaucratic bottlenecks for residents and businesses.

The new legislation intends to resolve this issue by stipulating that explicit conversion permissions from revenue officers will no longer be mandatory for lands situated within municipal corporations, municipalities, notified area councils, or regional development authorities. However, this exemption is subject to the land use plan adhering to approved building plans, master plans, development schemes, or local bye-laws.

Municipal and urban authorities will handle both the assessment and collection of land conversion fees during the planning approval stage, subsequently transmitting the payments to the state treasury. Once the fees are received, the local municipal authorities will notify the Revenue Department electronically, which will then update the Record-of-Rights (RoR) to reflect the land's non-agricultural status within a specified period.

The proposed amendment, however, does not come without conditions. The land use must comply with an approved layout or building plan and adhere to the relevant master plan, development plan, or town planning scheme. In cases where no such plan exists, the proposed use must conform to prevailing local bylaws and regulations. Certain types of land are exempt from conversion under the proposed provisions.

These include "Jungle" kisam land recorded or highlighted as forest under the applicable forest law, sites protected under the Ancient Monuments and Archaeological Sites and Remains Act, 1958, and any land whose conversion is prohibited under a special law. In cases where applications are already pending when the new Act is enacted, the transition mechanism will allow these applications to proceed under the existing provisions.

Applicants will also have the option to withdraw their pending applications and submit new ones under the amended provisions. The Bill also proposes revisions to Section 73 of the Odisha Land Reforms Act, changing its heading to encompass specific sections or provisions of the Act that may not apply to certain lands. Debabrata Mohanty, a senior assistant editor at Hindustan Times, will report on this bill's developments from Odisha, covering its politics, governance, public policy, natural disasters, environment, and society.

With over three decades of experience, Mohanty is one of the most experienced and credible journalists reporting from the state capital of Bhubaneswar.