Bhubaneswar: In a major reform aimed at accelerating industrial growth and promoting entrepreneurship, the Odisha government has simplified land-use regulations for Micro, Small and Medium Enterprises (MSMEs) and start-ups. Under the new provision, registered MSME and start-up units are now exempt from obtaining Change of Land Use (CLU) permission under the Odisha Land Reforms Act.
The reform, implemented from October 25, 2025, is expected to significantly reduce procedural delays and compliance burdens, enabling faster grounding of projects across the state.
Officials said the move eliminates redundant approvals that often slowed down small industrial ventures, especially at the early stages. By doing away with the CLU requirement for eligible units, the government aims to shorten project timelines, improve ease of doing business, and encourage self-employment and grassroots entrepreneurship.
“This is a decisive step towards creating a more enabling ecosystem for MSMEs and start-ups,” said a senior official. “The reform ensures speed and simplicity while continuing to protect restricted and environmentally sensitive land categories.”
Industry stakeholders have welcomed the decision, noting that land-use approvals were one of the most time-consuming hurdles for small businesses. The exemption is expected to benefit a wide range of enterprises, from manufacturing and processing units to innovation-led start-ups, particularly in semi-urban and rural areas.
The government clarified that the relaxation applies only to duly registered units and does not dilute safeguards related to forest land, ecologically sensitive zones or other restricted categories.
The land-use reform aligns with Odisha’s broader push to strengthen its MSME ecosystem, attract investment, and generate employment, reinforcing the state’s position as an emerging industrial and start-up destination in eastern India.
-OdishaAge
