Bhubaneswar, Dec. 14: Bad news for city residents wanting to own a plot of land. Every inch of land is set to be dearer by five times.

The highest premium rate for residential plots in 21 upmarket localities will be Rs 1.5 crore per acre, while industrial and commercial plots will cost Rs 1.8 crore and Rs 3 crore, respectively.

At present, the premium rate for the three categories of land in the fully developed areas are Rs 30 lakh, Rs 50 lakh and Rs 75 lakh, respectively, as notified in 1998.

A proposal for upward revision of land premium was approved by the state cabinet today, said chief secretary T.K. Mishra. Land premium rates would be fixed on the basis of benchmark valuation, said Mishra. There will be five categories of premium rates, as recommended by a cabinet sub-committee (see chart).

Sources said agriculture minister Damodar Rout had expressed apprehension that with such a high premium rate, government land would be out of reach for middle and lower middle class citizens.

However, officials explained that the revision was long overdue and in the meanwhile the private land price had gone up considerably.

Water corporation

The cabinet also decided to set up Orissa Water Corporation, a fully government-owned body, to look after drinking water and sewerage service in Bhubaneswar on pilot basis. It will be accountable to Bhubaneswar Municipal Corporation.

The institutional mechanism, fixation of tariff and revenue sharing would be worked out by an expert committee, said urban development secretary Arun Panda.