In a notable policy shift, the Odisha government has permitted the diversion of irrigated and to-be-irrigated agricultural land for industrial purposes, introducing a compensatory framework aimed at maintaining irrigation potential in affected areas. The Department of Water Resources (WR) issued guidelines stating that while agriculture and industrialization are both vital for economic growth and employment, industries may occasionally need to use irrigated land due to project requirements or prior investments. Under the new rules, if such land diversion is necessary, industries must create compensatory irrigation capacity equal to twice the area lost. This includes restoring water supply for downstream farmers if existing irrigation systems are obstructed by industrial projects. Industries are responsible for all costs associated with these compensatory measures, including land acquisition for new irrigation systems. The guidelines also stipulate that if the creation of new irrigation capacity is not feasible within the same area, it should be developed in neighboring districts, with additional costs for future escalation included. This policy aims to ensure that while industrial growth is pursued, agricultural interests are not compromised.