In a significant move to stimulate residential development, the Odisha government has reduced the conversion fee for leased land to freehold status from 10% to 3% of the Bench Mark Value (BMV), effective immediately.
The decision, approved during a cabinet meeting on June 3, 2025, under the chairmanship of the Chief Secretary, aims to alleviate financial burdens on homeowners and encourage urban growth in the state.
The new policy applies to land originally leased by the Odisha State Housing Board or development authorities, such as the Bhubaneswar Development Authority (BDA), and is tailored for residential purposes. According to the official order, the conversion fee will be assessed at 3% of the BMV, provided the construction adheres to the approved building plan without deviations. In cases where deviations fall within permissible limits and are regularised by competent authorities, the same 3% fee applies. However, conversions involving deviations beyond permissible limits will be disallowed unless regularisation is obtained.
Applicants seeking freehold status must submit a certificate from authorities like the Bhubaneswar Municipal Corporation (BMC) or BDA, confirming compliance with building regulations. This requirement addresses a 2023 Land Use Policy study highlighting that 30% of urban land conversions in India faced delays due to unregulated deviations, a challenge the new policy aims to mitigate.
