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.
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 |
Also Read: Jharkhand PCCF Ashok Kumar Gets Additional Charge of Wasteland Development Board
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.
| 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 |
Also Read: Coal India Revised Land Compensation Policy, Offers Bigger Compensation for Land Without Job
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.
Also Read: Hindalco Resolves Land Dispute for Chakla Coal Project After Talks with Villagers
Join the WhatsApp Group of Business Jharkhand to Stay tuned for all the latest updates of industrial-political developments in Jharkhand.
