Jharkhand Drafted New Land Allocation Policy for Industries, Sent for Cabinet Approval

The Jharkhand Government has prepared a new draft policy for land allocation in industrial areas, titled Jharkhand Land Allocation Policy 2025. The policy, which seeks to tighten rules and ensure that only genuine entrepreneurs receive industrial plots, will soon be placed before the State Cabinet for approval.

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The draft policy introduces a five-year lock-in period, barring entrepreneurs from selling or transferring their allotted land or factory until five years of production are completed. Transfer fees are set to rise sharply from 15% to 25% for MSME units and from 25% to 40% for large industrial units. Additionally, mandatory net worth and turnover criteria will now screen applicants to ensure that only financially sound players participate in the land allotment process.

Key Provision	Current	Proposed
Lock-in Period	No fixed period	5 years post-production
Transfer Fee – MSME	15%	25%
Transfer Fee – Large Units	25%	40%
Eligibility Norms	Limited financial scrutiny	Net worth & turnover mandatory

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Industrial Land and Units in Jharkhand

Jharkhand currently has 157 industrial areas with a combined land allocation of 9,748.56 acres, of which 1,695.58 acres remain vacant for new projects. The state houses 3,519 industrial units, with Adityapur region leading with 1,533 units and maximum land under use.

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Region	Industrial Areas	Land Allocated (acres)	Land Vacant (acres)	Units
Santhal Pargana	27	1,460.80	400.15	353
Bokaro	14	1,634.04	6	660
Ranchi	42	1,889.80	110.75	973
Adityapur	74	4,763.86	1,179.08	1,533

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Policy Objective and Industrial Outlook

Sources said that the primary aim is to curb land hoarding and speculation, a persistent challenge in several industrial zones. By enforcing stricter conditions, the Government hopes to encourage real investment, production activity, and job creation rather than speculative holding of land. The policy aligns with previous industrial strategies, including the 2016 Industrial & Investment Promotion Policy and the 2021 Industrial Policy, which aimed to accelerate sustainable industrial growth and link Jharkhand’s youth with employment opportunities.

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