Archive · 14 Aug 2026
SAIL township lease deadlock leaves retired employees in Durgapur limbo
Many years ago, a big steel company gave its workers some land so they could build their own homes.
The workers built houses there, and their children and grandchildren grew up in them.
But the land deal only lasted for a certain number of years, and that time has now ended.
The company says the families must sign a new deal and pay a lot of money for the land.
Some workers and their families are worried they might have to leave the homes they built.
A local leader called an MLA went to Delhi to talk to a minister about the problem.
The minister said nobody had asked for help before.
The families are asking for something called freehold, which means the land would truly belong to them.
They do not want to lose the home where their grandparents' memories live.
Hundreds of retired Steel Authority of India Limited (SAIL) employees face uncertainty over ownership of homes in a cooperative township on 150 acres at Durgapur's City Centre.
The 33-year lease on the land ended on 15 May 2026, with the renewal issue said to have remained unaddressed for over 35 years.
Durgapur Paschim MLA Lakshman Chandra Ghorui met Union Minister of State for Steel Bhupathiraju S Varma, who said no one had previously pleaded for redressal.
SAIL issued a fresh circular on 26 June fixing policy guidelines for a 33-year lease renewal, empowering Durgapur Steel Plant to claim 15 per cent of the land premium at the current market rate.
Residents and the MLA are demanding freehold settlement instead of renewal, arguing retired employees cannot afford the fresh demand after land prices skyrocketed.
- Who
- Roughly 1,875 retired employees of the Steel Authority of India Limited (SAIL) and their families, along with Durgapur Paschim MLA Lakshman Chandra Ghorui.
- What
- A decades-old dispute over the renewal of a 33-year lease for a cooperative housing township on 150 acres, with residents demanding freehold ownership instead of another lease.
- When
- The lease ended on 15 May 2026, and SAIL issued fresh renewal guidelines on 26 June of that year.
- Where
- City Centre township in Durgapur, West Bengal; the MLA met the minister in Delhi.
- Why
- Retired employees want permanent ownership of the homes they built, while SAIL's renewal policy requires a 15 per cent land premium at current market rates that residents say they cannot afford.
Residents and MLA Ghorui
SAIL and its policy
Ownership form
Residents and MLA Ghorui
Residents and MLA Ghorui want freehold settlement so employees can permanently own the homes they built.
SAIL and its policy
SAIL offers a fresh 33-year lease renewal under its new policy guidelines instead of freehold.
Cost of renewal
Residents and MLA Ghorui
The 15 per cent land premium at current market rates is seen as an injustice; retired employees lost the financial strength to meet the exorbitant demand.
SAIL and its policy
The new policy empowers Durgapur Steel Plant to claim 15 per cent of the land premium valued at the current market rate.
Cause of delay
Residents and MLA Ghorui
MLA Ghorui says the lease renewal issue has remained unaddressed for over 35 years, leaving uncertainty over ownership.
SAIL and its policy
Minister of State Bhupathiraju S Varma told the MLA that no one had previously pleaded for redressal on the matter.
- Township
- City Centre, Durgapur, West Bengal
- Land area
- 150 acres
- Affected residents
- About 1,875 retired SAIL employees
- Housing societies
- 62, under the SAIL Cooperative
- Original lease
- 33 years, granted by Durgapur Steel Plant in 1994
- Lease expiry
- 15 May 2026
- SAIL renewal circular
- Issued 26 June 2026, offering another 33-year lease
- Renewal condition
- 15% land premium at current market rate claimed by Durgapur Steel Plant