The West Bengal government is considering allowing companies to change their original project plans on government-allotted land if their proposed investments have stalled, Chief Secretary Manoj Agarwal said on Thursday.
The proposed approach aims to encourage companies to put unused land and stalled projects back into operation. Instead of immediately reclaiming plots where work has not started, the government may give allottees an opportunity to submit revised proposals.
Agarwal outlined the proposal while speaking at the foundation stone-laying ceremony of the Adani Arogya Mandir, a planned 2,000-bed hospital in Rajarhat. The hospital is coming up on land that was originally allotted for a technology project.
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Government May Allow Revised Project Plans
Chief Secretary Manoj Agarwal said the government could allow entrepreneurs to submit fresh proposals when their original projects have not materialised.
Under the proposed approach, companies could suggest a different project for their allotted land. The government would then examine the new proposal before deciding whether to permit the change.
Agarwal said the administration could technically reclaim land under existing lease conditions when companies fail to start their projects. However, the government wants to provide an opportunity to revive such investments through revised plans.
The proposal could apply to other allotted plots where businesses have not begun work within the required period.
Employment to Be a Key Consideration
The government is considering employment generation as an important factor while evaluating revised project proposals.
Agarwal said projects that generate 100 jobs per acre would receive priority under the approach being considered.
This benchmark could encourage companies to submit projects with significant employment potential. It could also help the government assess whether a proposed change would create enough economic activity to justify continued use of the allotted land.
The Chief Secretary did not provide details on whether companies would need to pay additional charges if they receive approval to change the purpose of their allotted plots.
Bengal Silicon Valley Tech Hub in Focus
The issue has particular significance for the Bengal Silicon Valley Tech Hub, where several companies received land for technology-related investments.
According to Agarwal, around 250 acres were allotted to 42 companies under the previous government for projects at the technology hub.
However, only five companies have completed their projects and are currently using around 20 acres of the allotted land. These operational projects represent an investment of nearly Rs 2,000 crore and provide employment to around 1,000 people, according to figures cited by the Chief Secretary.
The technology hub had been planned to accommodate high-technology industries, including data centres. The slow progress on several allotted plots has now prompted the government to consider greater flexibility in project plans.
Adani Hospital Project Highlights Policy Shift
The proposed Adani Arogya Mandir provides a prominent example of the approach being considered.
The Adani Group had received 51.75 acres on a 99-year lease in the Silicon Valley hub for a hyperscale data centre project. The land was originally intended for a technology-related development.
The group has now started work on a 2,000-bed hospital on the site. The hospital project therefore represents a change from the original purpose for which the land was allotted.
Agarwal said the government’s decision to provide an opportunity to change project plans could have implications beyond this particular development. It could potentially apply to other companies that received land but failed to implement their original proposals.
Government Seeks to Unlock Unused Land
Unused industrial land can remain a challenge for governments seeking new investment. When companies receive land but fail to begin projects, the plots may remain idle while other businesses search for suitable locations.
The proposed policy could allow the government to address this problem by evaluating alternative projects for such land.
Instead of automatically cancelling allotments, authorities could examine whether a revised project can create employment and investment. This could also help existing infrastructure and industrial zones generate more economic activity.
However, each proposal would require assessment to ensure that the new project complies with applicable land and lease conditions.
New Industrial Policy Also Underway
The proposal comes as the West Bengal government prepares a new industrial policy.
Chief Minister Suvendu Adhikari said on September 23 that the state plans to unveil the policy before Durga Puja. The proposed policy will cover areas including land pooling, direct land purchase, investment incentives and a single-window clearance system.
The government has also recently allotted land to 33 industries. According to the Chief Minister, those allotments are expected to bring around Rs 60,000 crore in investment and create approximately 62,000 jobs. Companies receiving the allotments have been given three years to complete their projects and employ local people.
The planned industrial policy and the proposal for revised project plans could therefore form part of the government’s wider efforts to attract and facilitate investment.
Balancing Flexibility With Land Regulations
Allowing companies to change project plans could give businesses greater flexibility when market conditions change.
A project that appeared viable when a company received land may become difficult to implement because of changes in technology, demand, financing or business strategy. A revised project could allow the company to use the land instead of abandoning the investment altogether.
At the same time, the government would need to consider existing lease conditions and the original purpose of land allotments. Authorities would also need to assess whether a proposed change provides sufficient economic and employment benefits.
The Chief Secretary has not yet detailed the complete mechanism for evaluating such proposals.
Focus on Reviving Stalled Investments
The proposed policy signals a possible shift towards finding alternatives for projects that have failed to take off.
For companies with stalled investments, the opportunity to submit revised plans could provide a route to continue operating on allotted land. For the government, successful implementation could help bring idle plots into productive use and generate new employment.
The Bengal Silicon Valley Tech Hub remains an important test case because a substantial portion of its allotted land is yet to become operational.
As West Bengal prepares its new industrial policy, the government’s approach to stalled projects, land use and employment generation is likely to remain an important part of its investment strategy. The final rules will determine how companies can modify their plans and what conditions they must meet before receiving approval.