Bengal govt to survey defunct industrial land, draft reuse policy

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Bengal govt to survey defunct industrial land, draft reuse policy

Synopsis

West Bengal's new BJP government under Chief Minister Suvendu Adhikari is moving to survey all unused land held by closed industries — and has ruled out real estate as the default reuse option. With 15 years of TMC-era SEZ stagnation to reverse and a ULCRA amendment on the table, this is the most consequential industrial land reset Bengal has seen in decades.

Key Takeaways

The West Bengal Land and Revenue Department will survey unused land parcels held by closed or defunct industrial units to frame a reuse policy.
The BJP government under Chief Minister Suvendu Adhikari has ruled out real estate development as the primary reuse option, prioritising MSME clusters and first-time entrepreneurs.
A 'direct land purchase' policy will govern all acquisitions — for industry, infrastructure, or BSF border security needs.
Unused land within SEZs established during the Left Front era will also be surveyed and opened for industrial development.
The TMC government blocked fresh SEZ permissions for its entire 15-year tenure (2011–2026) .
The government plans to amend the Urban Land (Ceiling and Regulation) Act, 1976 (ULCRA) to improve land availability for industrial projects.

The West Bengal Land and Revenue Department has decided to conduct a comprehensive survey of unused land held by closed or defunct industrial units across the state, with the aim of identifying viable reuse options and framing a structured policy for their redevelopment. The initiative, driven by the new state government under Chief Minister Suvendu Adhikari, marks a deliberate departure from the land-use practices of the previous Left Front and Trinamool Congress (TMC) administrations.

Key Developments

According to a source within the state secretariat at Nabanna, the current Bharatiya Janata Party (BJP) dispensation is opposed to the earlier approach of deploying surplus industrial land for real estate development. Instead, the government intends to make these parcels available to investors, MSME clusters, and first-time entrepreneurs with viable project proposals.

'In case any portion in such land parcels is allotted for real estate, it would be the bare minimum and also the last option only if proper investment proposals are not available for some portions within those land parcels for any viable entrepreneurship projects,' the state secretariat insider said.

Direct Land Purchase Policy

The new government has adopted a 'direct land purchase' model, under which the state will directly acquire land from owners and subsequently allot it for industrial or infrastructure use. This policy applies uniformly — whether for industrial promotion, infrastructure development, or land transfers to the Border Security Force (BSF) for security purposes in border-adjacent areas.

Separately, the survey will also cover unused land allotted within special economic zones (SEZs) established during the Left Front era, with a view to unlocking these parcels for industrial development or entrepreneurship promotion.

Three-Point Objective

'The entire objective of the survey for proper utilisation of land for entrepreneurship is based on three main targets — promoting manufacturing and economic activity, employment generation and improving the state's own tax revenue generation,' the secretariat insider said.

This three-pronged framework signals that the Adhikari government is positioning industrial land reform as a fiscal strategy, not merely a policy correction.

Reversing 15 Years of SEZ Stagnation

The policy context is significant. While the Left Front encouraged SEZs in and around Kolkata, the Mamata Banerjee-led TMC government, as a matter of policy, refused permissions for any fresh SEZs during its entire 15-year tenure from 2011 to 2026. The result, critics argue, was a growing inventory of underutilised industrial land with no clear reuse framework.

The new government has also flagged plans to review and amend the Urban Land (Ceiling and Regulation) Act, 1976 (ULCRA), to improve land availability for industrial and infrastructure projects — a legislative step that could have far-reaching implications for how surplus urban land is classified and deployed in West Bengal.

What Comes Next

The survey timeline has not been officially announced, though the state secretariat source indicated the exercise would begin 'soon'. Once completed, findings are expected to feed directly into a concrete land reuse policy. Industry observers will watch closely whether the MSME and first-time entrepreneur focus translates into actionable allotment frameworks, or remains an aspirational directive.

Point of View

And the absence of a survey timeline or allotment framework suggests this is still in the aspirational stage. The ULCRA amendment, if it actually moves through the legislature, could be the more consequential intervention — that law has constrained urban land supply for decades. Whether the MSME-first mandate survives contact with investor demand for better-located parcels remains the central question.
NationPress
16 Jul 2026

Frequently Asked Questions

Why is the West Bengal government surveying defunct industrial land?
The West Bengal Land and Revenue Department is surveying unused land held by closed industrial units to identify reuse options and frame a concrete policy. The stated goals are promoting manufacturing, generating employment, and improving the state's tax revenue.
What will the land be used for under the new policy?
The government intends to make the land available for MSME clusters, investors, and first-time entrepreneurs with viable projects. Real estate development has been designated as the last resort, applicable only where no suitable industrial or entrepreneurial proposal is available.
What is the 'direct land purchase' policy in West Bengal?
Under this policy, the state government directly purchases land from owners and then allots it for industrial, infrastructure, or security purposes. It replaces earlier models where land acquisition involved intermediary arrangements or was channelled through SEZ frameworks.
How does this differ from the TMC government's approach?
The Mamata Banerjee-led TMC government refused permissions for any new SEZs during its 15-year tenure from 2011 to 2026 and did not have a structured policy for reusing defunct industrial land. The new BJP government is explicitly reversing that stance by prioritising industrial reuse over real estate.
What is the proposed change to the Urban Land (Ceiling and Regulation) Act?
The West Bengal government plans to review and amend the Urban Land (Ceiling and Regulation) Act, 1976 (ULCRA), to improve the availability of land for industrial and infrastructure projects. Specific amendments have not yet been detailed publicly.
Nation Press
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