"Odisha Industrial Infrastructure Development Corporation (IDCO) Act, 1980 read with the Transfer of Property Act, 1982 permits the IDCO to allow industries for raising finance," industries minister Debi Prasad Mishra said while replying a debate in the Assembly.
Mishra also said that the column "General Power" in the IDCO Act, 1080 also empowers the state owned corporation to issue no objection certificates to industries which wanted to avail loans from financial institutions like banks.
The industries which have been allotted land by IDCO have meanwhile raised loan amounting about Rs 52,000 crore from different financial institutions.
The opposition Congress and BJP members slammed the state's ruling party accusing it of raising election expenses from industries by using IDCO.
BJP member K V Singhdeo also raised similar issue and alleged that the industries have grossly mis-utilised the government land after taking them on lease through IDCO.
"While industrial plots have been utilised for residential purpose, it is found that institutions are built on such land," Singhdeo pointed out.