Odisha govt accuses IOCL of violating lease agreement at Paradip refinery

Bhubaneswar: Odisha government and Indian Oil Corporation Limited (IOCL) are once more heading for a pitched battle as the former has accused the latter of violating land lease agreement signed between the two for the refinery project at Paradip.

In a letter to Deputy General Manager (HR) of IOCL’s Paradip refinery project, Chief General Manager (Land) of Odisha Industrial Infrastructure Development Corporation (IDCO) served a notice under Clause-2 of lease deed for causing hindrance of public thoroughfare over the road connecting from NH-5A to IOCL plant site at Chaukimatha.

Besides, it also issued a show cause to IOCL to reply within 15 days as to why appropriate action shall not be initiated by IDCO for violation of terms and conditions of the lease deed and allotment.

“General public have the easement rights to use the external approach road constructed by IOCL without hampering the day to day business of the Company. By obstructing the passages of general public IOCL is violating the agreement. Hence, in accordance to the Clause No.2 of the Lease Deed executed between IDCO and Company, the lessee shall not at any time during the tenure of the lease acquired an absolute or exclusive proprietary right over the land or claim any such right whatsoever, excepting the rights to use the land in the manner prescribed,” the letter said.

The government said in the letter that the external approach road is connecting NH – 5 A to IOCL plant site crossing the Kujanga Road which is used by the general public. As it is an external road, the general public are using it for daily commutation. It has come to the notice of the lessor that, the lessee i.e. M/s. IOCL is making hindrances for public thoroughfare over the road by the general public.

The Clause No.27 of Lease Deed executed between IDCO & IOCL envisages that “the lessee shall have to abide by all the terms and conditions enumerated in the lease deed executed between the Collector & District Magistrate, Jagatsinghpur and IDCO. The lessee shall abide by all the terms and conditions as laid down in the allotment along with the terms and conditions stipulated by Industrial Infrastructure Advisory Committee (IIAC)/State Level Single Window Clearance Authority (SLSWCA)”, it added.

It further said that in Lease Deed executed with the Collector & IDCO, the Clause No.2 stated that “the Corporation will have the surface right over die land. The existing and customary rights of Government and the public in roads and paths and rivers, streams and channels running through or bounding the land are reserved.”

Notably, 338.410 acre of acquired private land and 60.420 acre of lease out government land spreading over Niharuni, Rangiagarh, Udayabata, Nimidihi and Niharuni Kandha has been allotted to IOCL for establishment of township and external approach road.