Bhubaneswar, July 17: The state government today asserted that land was allotted to industries by the Industrial Infrastructure Development Corporation (Idco) across the state in a transparent manner and it had power to permit mortgaging land for raising finance.

The comptroller and auditor general (CAG), in its latest report, stated that Idco had “irregularly conferred mortgage rights in lease deeds executed with 52 industries, which have signed MoU with the government and 54 industries, which have not”.

Responding to an Opposition-sponsored adjournment motion in the Assembly today, industries minister Debi Prasad Mishra said that according to the law and opinion of legal experts, “Idco has the power to mortgage or sell a land, but cannot gift it”.

Referring to the CAG report, Opposition members accused the government of committing irregularities in land allotment and permitting mortgage of land. “Industrial land has been allotted arbitrarily, even to ruling party politicians,” alleged Congress member Bhujabal Majhi.

Alleging that industrial plots were being used for other purposes, BJP leader K.V. Singh Deo alleged that such plots were even being used for residential purposes.

Criticising the government inaction against diversion of industrial land for other purpose, he accused Idco and the government of shielding the guilty.

The Opposition members alleged that the government had shown favours to private companies and individuals to raise election funds.

Denying allegations, the minister said Idco had allotted land on the recommendation of state-level nodal agency, industrial promotion and investment corporation, district-level committees and other government agencies.

Idco has allotted 19,444 acres of government land, 34,224 acres private land to 94 industrial projects, who have signed MoU and 133 others, who have not gone through the MoU route. “Of 94 projects on the MoU route, status of 50 has been assessed. Idco has issued show cause notice to the allottees, who have not completed their projects,” said Mishra.

Many of steel projects like that of Jindal Steel and Power, Essar Steel, Jindal Stainless, Visa industries, power projects of Sterlite and GMR, aluminium projects of Vedanta, Aditya Birla and Utkal Alumina have become operational following land allotment. Tata Steel’s plant at Kalinga Nagar and Indian Oil Corporation’s oil refinery project in Paradip are at advanced stage of completion.