The Expenditure Finance Committee (EFC), headed by Sanjeeb Kumar Mishra, principal secretary of the finance department, recently gave its nod to launch a new scheme —Land Bank for Hospitality Infrastructure for a five-year period from FY27 to FY31.
Under the proposed scheme, around 5,500 acres of government and private land will be identified, acquired, alienated and brought under the tourism land bank in major tourism circuits. The state government has proposed an investment of ₹1,500 crore for the scheme, to be funded entirely through the state budget. According to the proposal discussed by the committee, the tourism land bank will facilitate planned, sustainable and investor-friendly hospitality development in Odisha. The move is expected to reduce delays in project execution arising from land-related bottlenecks and create ready-to-use land parcels
Although Odisha has approved more than 55 major hotel and resort projects worth over ₹3,211 crore in the past two years, many are non-starters due to land acquisition related issues. The approved projects include 24 luxury resorts, four 5-star hotels and nine 4-star hotels, besides six premium hospitality projects.
The approvals feature top-tier chains like World of Hyatt, ITC Hotels, Radisson, Lemon Tree and Atmosphere Core. There are plans to develop eco-resorts and luxury mountain retreats in tribal and remote districts such as Koraput, Keonjhar, Mayurbhanj, and Kandhamal, apart from coastal districts of Puri, Khurda, Jagatsinghpur, and Ganjam.
The proposed land bank will cover 15 tourism destinations including Shamuka (1,515 acres), Hirakud (931 area), Konark (700 acres), Chilika (416 acres), Buddhist Circuit (362 acres), Kolab (361 acres), Similipal (255 acres), Satkosia (242 acres), Tampara-Aryapalli (233 acres), Bhitarkanika (149 acres), Daringbadi (101 acres), Deomali (98 acres), Talsari (45 acres), Dhauli (30 acres) and Jiranga (25 acres).
Officials said the initiative aligns with the state’s long-term “Viksit Odisha Vision 2036-2047” and the tourism policy aimed at improving tourism infrastructure, increasing tourist footfall and night stays, and ensuring balanced regional development. “Lack of readily available land with clear title has been a major hurdle in attracting hospitality sector investments in several tourist destinations,” they admitted.
The estimated expenditure includes costs related to the acquisition of private land, benchmark valuation escalation and rehabilitation and resettlement provisions. The state government plans to spend ₹300 crore annually over five years under the scheme.
As per the approved framework, land acquisition and alienation will be undertaken in coordination with the Revenue and Disaster Management Department, Industrial Infrastructure Development Corporation (IDCO), Odisha Tourism Development Corporation (OTDC) and district administrations. The process will follow all statutory norms and government policies.
“The scheme is approved for implementation during the period from 2026-27 to 2030-31 with a total outlay of ₹1,500 crore. All environmental, CRZ, forest, and other statutory clearances, wherever applicable, will be obtained prior to finalisation of land parcels for inclusion in the tourism land bank,” stated the proceedings of the meeting reviewed by Business Standard.
During discussions, the committee observed that tourism infrastructure development is highly land-intensive and requires advance planning. The creation of a structured tourism land bank would improve ease of doing business, reduce project gestation periods and support planned and regulated tourism growth. The initiative could generate substantial direct and indirect employment opportunities, promote local entrepreneurship and support regional economic development in tourism-dependent areas.
“The Department of Tourism will issue the necessary notification after obtaining approval from the State Cabinet chaired by Chief Minister Mohan Charan Majhi and communicate the same to all departments. It will also come up with a robust and hassle-free land allotment policy to maintain transparency and orderly development while focusing on tourism related aspects,” said an official.
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