Wed Jan 14 23:45:00 UTC 2026: ### Odisha Villagers Demand Return of Land After Power Project Failure

The Story: Villagers in the Dhenkanal district of Odisha, India, are demanding the return of approximately 1,000 acres of land acquired in 2008 for a proposed 1,320 MW supercritical coal-based thermal power plant. The project, initiated by the Hyderabad-based Lanco Group, failed to materialize after the company went bankrupt. Villagers allege they received meagre compensation for their land and are now left without jobs or sustainable livelihoods. They are further angered by the subsequent transfer of the land to another company for what they consider a paltry sum.

The villagers have appealed to the Dhenkanal district collector for the restoration of their land, citing provisions in land acquisition laws that stipulate the return of land if a project does not materialize within five years. Their legal counsel alleges irregularities in the land transfer process, claiming the Odisha Industrial Infrastructure Development Corporation (IDCO) and the villagers were not adequately consulted when the land was approved for transfer at ₹10 lakh per acre. With a new steel plant now proposed for the site, the villagers fear environmental pollution and continue to advocate for the return of their land and the clearance of outstanding dues from Lanco Group.

Key Points:

  • Villagers in Odisha’s Dhenkanal district seek return of 1,000 acres acquired for a failed power project.
  • Land was acquired around 2008 by Lanco Group for a 1,320 MW thermal power plant.
  • Villagers received compensation ranging from ₹3 lakh to ₹6 lakh per acre.
  • Lanco Group went bankrupt, and the land was later transferred to another company for ₹100 crore.
  • Villagers claim land acquisition laws mandate the return of land if projects fail within five years.
  • A steel plant is now proposed for the land, raising environmental concerns among villagers.

Key Takeaways:

  • The case highlights the risks faced by communities when land is acquired for industrial projects that ultimately fail.
  • The low compensation provided to villagers raises questions about fair value and equitable land acquisition practices.
  • The lack of transparency and consultation in the land transfer process has fueled resentment and distrust among the affected communities.
  • This incident demonstrates the importance of robust regulatory frameworks to protect the rights and interests of landowners in industrial development projects.
  • The proposed steel plant further complicates the situation, highlighting the need for sustainable and environmentally responsible development strategies.

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