CAG criticises Orissa govt's land acquisition for industries and management process

BHUBANESWAR: The Comptroller and Auditor General ( CAG) has caught the Orissa government on the wrong foot on land acquisition for industries and land management process.

"In case of both acquisition of private land and leasing of government land, fixation of market rates tend to benefit the buyer at the cost of land owners," the CAG said in its recent report tabled in the Assembly.

Poor land owners in the state who are parting their land for industrialisation are paid less for their land to benefit industrial houses, CAG said adding that prompted by media reports about irregularity in land acquisition in Kalinga Nagar, Paradip and Puri districts it conducted performance audit in selected places.

"Under assessment of compensation by Rs 63.98 crore was noticed in 34 cases of acquisition of 3120.577 acre of land for 11 industries due to erroneous fixation of market value of land," it said.

In one district, the report pointed out that due to such erroneous fixation of market value and additional payment of ex-gratia to land owners, the state government was deprived of charging establishment charge of Rs 8.19 crore from the buyers (industries).

The state government had acquired land in six districts where land were acquired for industrial houses like Vedanta Resources, Jindal Steel & Power, Tata Steel, Utkal Coal Ltd, GMR Energy, Bhusan Steel & Strips, BRG Iron & Steel, Rungta Mines, Nilachal Ispat Nigam and Brand Alloys and Eastern Steel & Power.