THEBUSINESSBYTES BUREAU

BHUBANESWAR, OCTOBER 24, 2026

Odisha has earmarked Rs 1,615 crore over five years under its PMAY-Urban BANDHU initiative to strengthen affordable housing, with a comprehensive strategy combining financial assistance, policy reforms, private sector participation and rental housing to bridge the gap between demand and supply.

The state's integrated approach to providing safe and affordable homes to economically weaker sections and vulnerable urban households was showcased at a session on “Affordable Housing – Demand & Supply Dynamics” during the 2nd National Urban Conclave 2026 held here.

Usha Padhee, Additional Chief Secretary of the Housing and Urban Development Department, outlined Odisha's efforts to address housing shortages through a combination of beneficiary support, development incentives, innovative housing models and planned land availability.

The PMAY-Urban BANDHU (Beneficiary Assistance for Nurturing Development of Housing Units) initiative seeks to strengthen the viability of affordable housing projects, provide assistance and incentives to construction workers, and extend proposed housing credit support to eligible households.

The initiative also aims to address the housing needs of landless families and those inadequately covered by existing provisions, while promoting affordable, rental and transit housing to cater to the diverse requirements of urban populations.

Highlighting the state's achievements, Padhee said beneficiary-led construction had resulted in the completion and occupation of approximately 1.4 lakh houses across urban Odisha. Affordable housing projects and in-situ slum redevelopment initiatives have also helped families gain access to secure homes in major cities.

To widen housing options for migrant workers and other mobile urban populations, rental housing retrofitting projects are being supported under BANDHU in Rourkela, Dhenkanal, Paradip and Jharsuguda.

Odisha has adopted a range of housing models, including mandatory affordable housing provisions in developer projects, market-based incentives, dedicated affordable housing schemes, in-situ slum redevelopment, relocation, beneficiary-led construction and rental accommodation.

The state has also introduced policy measures to reduce housing costs and encourage greater participation by developers and private investors. These include substantial reductions in stamp duty and registration charges for eligible homes, mandatory provisions for Economically Weaker Section (EWS) and Low-Income Group (LIG) housing, and incentives through additional Floor Area Ratio (FAR) and Transferable Development Rights (TDR).

Reforms concerning rental housing and provisions for reserving land for affordable housing in Master Plans and Development Plans are also part of the state's broader strategy to expand the supply of housing in urban areas.

Another key initiative highlighted was the proposed BHUMI (Bank of Land for Housing & Urban Masterplan and Infrastructure) framework, envisaged as a dedicated land bank to facilitate housing and urban infrastructure development.

The proposed framework would include a GIS-based land inventory, a nodal mechanism for land allocation and dedicated financial arrangements to ensure the availability of land for planned urban growth. The draft policy is under process and is proposed to be placed before the Cabinet for approval.

The session was moderated by Kumar Ravikant Singh, Joint Secretary in the Union Ministry of Housing and Urban Affairs.

Other panellists included Mohammed Shayin, Commissioner and Secretary, Housing for All Department, Government of Haryana; N K Patel, Chairman, NAREDCO Gujarat; Pankaj Motwani, Managing Director, Motwani Constructions; Soumendu Chatterjee, Senior Executive Director, ANAROCK Property Consultant; and Kiran Avadhanula, Senior Urban Sector Specialist and Lead, Sustainable Urban Development, KfW Development Bank.

Odisha's presentation emphasised that addressing urban housing shortages requires coordinated action on both the demand and supply sides, supported by financial assistance, enabling policies, private sector investment and systematic land management.

Through these complementary measures, the state aims to improve access to affordable homes for diverse urban communities, address the needs of vulnerable households and promote inclusive and sustainable urban development.