Puri: Land prices in Odisha’s Puri are set to rise soon as the government plans to revise the benchmark valuation for land in areas falling under the proposed municipal corporation. A formal notification regarding the revised rates will be issued soon.

The decision was taken at a meeting of the Benchmark Valuation Committee held at the Circuit House. The meeting was attended by the sub-collector, sub-registrar and representatives from the tehsil office and the local municipal authority. Officials discussed the need to increase the benchmark land value in view of the sharp rise in property transactions in the region.

The revision comes at a time when preparations are underway for the formation of the Puri Municipal Corporation. As part of the expansion plan, 34 revenue villages from nine surrounding panchayats have been included within the municipal limits. Along with the existing 31 wards of the municipality, these villages have been reorganised to form 39 wards under the new civic body.

Land transactions in the newly included villages have surged significantly. Many investors and businesspersons are actively purchasing land in the proposed municipal corporation area. In several locations, land that earlier cost around Rs 10 lakh per acre is reportedly being sold for as much as Rs 2 crore per acre.

Considering the sharp difference between the government benchmark rate and the actual market value, authorities have decided to revise the official rates.

For instance, in Gopinathpur panchayat, the benchmark value was earlier fixed at about Rs 12 lakh per acre. The rate is now likely to increase nearly three times as records show that land registration in the area has been taking place at prices more than three times the existing benchmark valuation.

In other areas, the existing benchmark rate is about Rs 3.9 crore per acre in Alikia, Rs 10 crore per acre in Atharanala and around Rs 4.5 crore per acre in Samanga. Benchmark land values in all 34 revenue villages are likely to be revised.

After issuing the notification, the government plans to invite objections and suggestions from the public before finalising the revised land rates.