Odisha Govt Waives Land Conversion Fees to Boost MSME Growth

In a major policy shift aimed at empowering small businesses, the Odisha government has announced a complete waiver of land conversion and lease fees for Micro, Small, and Medium Enterprises (MSMEs).

Revenue Minister Suresh Pujari confirmed that entrepreneurs will no longer be required to pay the earlier 1% benchmark value for land conversion or the additional 1% lease rent—provided the land is listed on the central portal and approved by the district committee.

This reform is expected to significantly reduce the financial burden on MSME entrepreneurs and streamline the process of setting up and expanding operations. However, the exemption excludes protected zones, defence areas, and archaeological lands.

Entrepreneurs must also adhere strictly to their declared land-use purpose; any deviation will require the land to be returned to the government.

The move reflects Odisha’s commitment to fostering industrial growth and attracting investment across sectors. By removing key financial hurdles, the state hopes to energize local entrepreneurship and strengthen its MSME ecosystem.