Bhubaneswar, Nov. 2: The state government today decided to constitute a land bank in order to attract investors to set up industries in the state. The cabinet today gave its nod to a proposal in this regard.

The cabinet meeting presided by chief minister Naveen Patnaik also took several other decisions, including pension for contractual state government employees and creation of common cadre for employees working under different municipalities.

Chief secretary G.C. Pati said: "About one lakh acres of land will be reserved for industries in the land bank. Acquisition for the bank will be done through Odisha Industrial Infrastructure Development Corporation (Idco) and with the help of the district administrations. Both government and private land will be acquired for the purpose."

The land acquired will be categorised under A and B groups. The land A category will be given to the industries and for promotion of industrial clusters and industrial parks. Those under the B category will be reserved for industrialisation and may also be used to set up medical, health and educational institutions. "A district-level committee led by a collector will identify and assess the land. When category A land is exhausted, Idco will use land from the other category," Pati said.

Sources said the state government had taken the decision following complaints by the industrial houses over non-availability of land. Steel major ArcelorMittal had shelved its 12-million-tonne steel project in Keonjhar because of land problems. South Korean steel maker Posco have also been facing problems for its project in Jagatsinghpur.

The cabinet also approved a proposal allowing industries to pay their outstanding water cess in five instalments.

Speaking on the issue of pension for contractual government employees Pati said: "The state cabinet gave its approval to a proposal for amendment to the Odisha Civil Services Pension Rules that will benefit state government employees working on contractual basis."

According to the proposal, employees working on a contractual basis will also get pension. Ten per cent of their salaries will be deducted towards pension and the government will contribute an equal amount.

On the decision to create a special cadre for the municipal employees, Pati said: "The employee will be appointed through the Odisha Public Service Commission and Odisha Staff Selection Commission. Once the draft proposal gets assembly's nod, employees under different cadres in the urban local bodies will be brought under the special cadre, which will streamline their recruitment and promotion process," Pati said.