STATE DEVELOPERS DEMAND CHANGE IN LAND CONVERSION RULES IN ODISHA TO ALIGN WITH MODERN URBAN PLANNING NEEDS
Maharashtra and Karnataka have reimagined their land conversion frameworks, allowing conversion to occur automatically during plan approval
Bhubaneswar, 18th March 2026: Recently, in a significant shift, Maharashtra and Karnataka have reimagined their land conversion frameworks to align with modern urban planning needs. In Karnataka, the requirement for separate land conversion in the Greater Bengaluru Area (GBA), covered under a CDP, has been removed, allowing conversion to occur automatically during plan approval. Similarly, Maharashtra has eliminated the need for separate NA permission, with building plan approval by the Town Planning Department or local planning authority now deemed sufficient.
In Odisha, builders often face long delays getting land conversion approvals. Old or unclear land records and different decisions by local authorities cause confusion and extra paperwork. Changing leasehold land to freehold makes it harder to get loans or sell property. Frequent rule changes and strict planning rules add to delays, costs, and risks for projects.
Commenting on the initiative undertaken by Maharashtra and Karnataka Govt, Mr Pradipta Kumar Biswasroy, Chairman, ODFED said, “These reforms show that land conversion is integral to planned urban development and aim to streamline procedures, reduce bureaucratic delays, and promote efficient growth. In Odisha Builders and developers function within a permission- heavy system that often leads to delays, unlike the quicker “notification- based” models followed in some other states. We are required to secure separate building plan approvals from development authorities, such as Bhubaneswar Development Area (BDA) and obtain a Non- Agricultural (NA) conversion order from the Revenue Department. In addition, on-site verification is conducted to ensure that the project does not affect natural streams or nearby agricultural land. Further, projects in districts like Khordha and Puri also face additional challenges”.
As India’s cities expand and urban skylines rapidly evolve, regulatory frameworks must keep pace with developmental needs. One of the most critical aspects of urban growth is land conversion process that transforms agricultural land into spaces for housing, commerce, and infrastructure. The land conversion is primarily regulated by state laws, as land is a State subject under the Constitution of India. Accordingly, agricultural land requires Non-Agricultural (NA) permission for construction or commercial use, granted by district authorities in accordance with the applicable Master Plan or Comprehensive Development Plan.
“Taking cues from these two key states, several developers in Odisha have called for the integration of land conversion procedures with the building plan approval mechanism to improve efficiency, reduce delays, and facilitate faster urban growth. They maintain that once a designated development authority has determined land use under the Master Plan, requiring additional clearances from the Tahsildar and district authorities only creates redundant layers and further slows development. Separate land conversion laws and multiple approval authorities are unnecessary, as they only delay projects and make the process lengthy and cumbersome,” said, Er Umesh Pattnaik, General Secretary, ODFED.
Therefore, adopting similar structural shifts could transform Odisha’s real estate landscape. Such reforms would not only accelerate development but also foster a more transparent, investor-friendly, and growth-oriented regulatory environment in the state.
