Key Takeaways:
- Udupi industrial land allotment now requires entrepreneurs to begin operations within six months or face forfeiture.
- Authorities will prioritise demarcation of small‑industry parks at Shivapura and Kerebettu and reassign forfeited plots to applicants on the waiting list.
- Banks urged to expedite credit disbursal under PM‑Vishwakarma and PMEGP to support beneficiaries.
- Officials directed to appoint an export inspection officer and disburse compensation for land acquired for road formation.
Udupi moves to reclaim idle industrial plots to boost local economy
Udupi Deputy Commissioner T.K. Swaroopa on Tuesday warned that entrepreneurs who do not begin industrial activity on allotted land within six months will forfeit their allotment, in line with the district’s allotment rules. The announcement came during a district‑level implementation committee meeting on industrial schemes held at Rajatadri, the district office complex.
Udupi industrial land allotment and the six-month commencement rule
Ms Swaroopa told officials that lands surrendered through forfeiture will be reallocated to applicants on the waiting list, noting repeated requests by some entrepreneurs for extensions without tangible progress. She said changes in company name or product range cannot be used repeatedly to delay commencement.
“When industrial activity gears up, it strengthens the district’s economy and creates more jobs for local aspirants,” the Deputy Commissioner said. The administration aims to encourage new entrepreneurs and support them to make their ventures successful.
As part of efforts to accelerate small‑scale industry development, Ms Swaroopa instructed officials to process applications for plots below two acres with project costs up to ₹15 crore at the district level. She directed that land earmarked for small industries at Shivapura (78.84 acres) and Kerebettu (38.75 acres) be demarcated on a priority basis.
Officials were further told to disburse compensation to owners whose land was acquired for road formation to the Belapu industrial area. The DC said that if owners refuse to accept compensation, the funds should be deposited with the court so that acquisition processes can proceed without delay.
Ms Swaroopa also highlighted the need to appoint an export inspection agency officer for Udupi district to promote and facilitate local exports. The move is intended to improve quality control and open new market opportunities for manufacturers and exporters in the region.
During the meeting, the Deputy Commissioner addressed delays in credit disbursal under central government schemes. While 3,992 beneficiaries were sanctioned financial assistance under the PM‑Vishwakarma scheme, only 3,675 have received credit so far. She urged banks to expedite the release of remaining funds.
Similarly, of the ₹20.27 crore in margin money planned for release to 526 units under the PM Employment Generation Programme (PMEGP), only ₹8.31 crore has been disbursed to 222 units. Ms Swaroopa directed banking officials to release the outstanding funds immediately to ensure promised support reaches beneficiaries.
Joint Director of Industries Nagaraj V. Nayak, District Small Scale Industries Association President Vasanth Kini, Municipal Commissioner Mahantesh Hangaragi and other officials attended the meeting and were asked to coordinate closely to implement the directives.
The Deputy Commissioner’s measures reflect a broader push to convert allotted plots into operational centres, attract investment and create employment across the district. By enforcing allotment rules and removing bottlenecks in land demarcation and credit flows, Udupi authorities aim to deliver on industrial development targets and support small entrepreneurs.
Officials will next report on the pace of demarcation at Shivapura and Kerebettu, the status of compensation payments for the Belapu road works, and the release of pending bank finance under government‑sponsored schemes.

















