Bhubaneswar: Real estate developers in Odisha have urged the state government to overhaul its land conversion rules, arguing that the current system creates unnecessary delays and hampers urban growth.
They pointed to recent reforms in Maharashtra and Karnataka as successful examples of streamlining the process to better support modern urban planning and development. In both Maharashtra and Karnataka, authorities have integrated land conversion directly into building plan approvals, eliminating the need for separate permissions. Karnataka has removed the requirement for distinct land conversion in the Greater Bengaluru Area (covered under its Comprehensive Development Plan), allowing automatic conversion during plan sanctioning. Maharashtra has similarly done away with separate Non-Agricultural (NA) permissions, deeming building plan approvals from the Town Planning Department or local authorities sufficient for conversion.
Odisha’s developers, represented by the Odisha Developers Federation (ODFED), said they face a far more cumbersome regime. Builders frequently encounter prolonged delays in securing land conversion approvals due to outdated or unclear land records, inconsistent decisions by local authorities, and excessive paperwork. Additional hurdles include difficulties in converting leasehold land to freehold status, which complicates financing and property sales, along with frequent regulatory changes and rigid planning norms that inflate project costs, timelines, and risks.
Chairman of ODFED Pradipta Kumar Biswasroy praised the approaches taken by Maharashtra and Karnataka. “These reforms demonstrate that land conversion is a core element of planned urban development. They aim to streamline procedures, cut bureaucratic delays, and encourage efficient growth,” he said.
He contrasted this with Odisha’s permission-heavy framework, where developers must obtain separate building plan approvals from bodies like the Bhubaneswar Development Authority (BDA) and secure NA conversion orders from the Revenue Department. On-site verifications further ensure projects avoid impacting natural streams or nearby farmland, with districts such as Khurda and Puri presenting extra challenges.
With urban areas expanding rapidly, developers emphasised that regulatory systems must evolve to meet growing demands for housing, commercial spaces, and infrastructure.
Under India’s Constitution, land remains a state subject, and agricultural land typically requires NA permission from district authorities to allow non-agricultural uses, guided by Master Plans or Comprehensive Development Plans.
General Secretary of ODFED Umesh Pattnaik highlighted the redundancy in Odisha’s multi-layered approvals. “Taking cues from these two key states, developers here are calling for integrating land conversion with building plan approvals. Once a development authority has zoned land under the Master Plan, requiring extra clearances from the Tehsildar or district officials simply adds unnecessary steps and slows progress. Separate conversion processes and multiple authorities are outdated and make projects lengthy and cumbersome,” he noted.
According to the developers, similar changes could significantly boost Odisha’s real estate sector by speeding up development, enhancing transparency, and creating a more investor-friendly environment. Such shifts, they argued, would align the state’s regulations with the pace of urbanisation and support sustainable, efficient growth in cities like Bhubaneswar.
