Odisha to Introduce Land Lease Policy for Renewable Energy Development

The Odisha government is drafting a dedicated land lease policy for renewable energy projects in a bid to address land acquisition challenges and accelerate the state’s transition toward its net-zero commitments, according to senior state officials.

Satyapriya Rath, Managing Director of GRIDCO Ltd, said land acquisition has become a key bottleneck for renewable energy deployment across multiple states, prompting Odisha to introduce a structured leasing framework to enable smoother project implementation. GRIDCO is the state-designated agency responsible for bulk power procurement on behalf of Odisha’s distribution companies.

Speaking at a workshop organised by the International Forum for Environment Sustainability and Technology (iFOREST), Rath said the proposed policy is currently in the draft stage and undergoing stakeholder consultations. The government expects to roll out the policy within the next two months following stakeholder vetting.

Under the proposed framework, land parcels will be leased to renewable energy developers for a 25-year period at nominal rates, a move aimed at improving project viability and attracting greater private-sector participation.

Odisha is promoting a diversified renewable energy mix, including solar, hydro, green hydrogen, and green ammonia projects, to meet its Renewable Purchase Obligation (RPO) targets. The state currently has an installed power capacity exceeding 9,000 MW, with more than 2,150 MW contributed by hydroelectric projects. An additional 500–600 MW of hydro power is sourced from projects located outside the state.

The government has also identified over 160 potential sites for small hydro projects, signaling further expansion opportunities. In parallel, subsidies are being extended for rooftop solar installations under the PM Surya Ghar Yojana, while floating solar and agro-photovoltaic (agro-PV) projects are being encouraged to diversify deployment models.

The proposed land lease policy is expected to play a critical role in strengthening Odisha’s renewable energy pipeline and supporting long-term clean-energy growth in the state.