The Mamata Banerjee government has cleared a policy that is expected to facilitate the construction of multi-storey buildings on thika tenancy land.

Thika tenancy plots, which originally belonged to zamindars but were taken over by the government, account for around 2,000 acres in prime locations in Calcutta and over 500 acres in Howrah. Several such plots now house slums.

Until now, construction on such land could not exceed 9.5 metres in height. The restriction will be removed after an amendment to the tenancy land act.

The state government has also promised to grant long-term leases to the tenants, which will help secure bank loans for developing high-rises.

Some realtors felt the policy could change the skyline of Calcutta but with the general election approaching, the government suggested that private promoters would not be given a role.