The central government on Thursday approved the return of 803 acres of land to Uttarakhand.
The land belongs to Nepa Limited, a public sector enterprise of the union government, at Hempur in Kashipur district.
It was allotted in 1987 on lease for 90 years by the then Uttar Pradesh State Industrial Development Corporation to Nepa Limited for setting up a bagasse based newsprint mill after remitting payment of Rs.149.23 lakh.
However, the lease deed could not be executed due to non-clearance from the Central Pollution Control Board on environmental grounds.
The Uttarakhand government, thereafter, sought return of the land for alternate use and has agreed to pay current circle rate.
"Returning this land to the state government is also justified as a large tract of land in an area short of this vital factor of production, is lying idle and can be put to productive public use by the state," a statement from the central government said.