Odisha empowers ULBs with enhanced financial autonomy, fast-tracks urban development

THEBUSINESSBYTES BUREAU

BHUBANESWAR, JULY 23, 2026

In a major administrative reform aimed at accelerating urban development, expediting decision-making, and strengthening governance across urban areas, the Odisha Government has substantially enhanced the financial powers of Urban Local Bodies (ULBs) and Smart City entities. The revised framework, notified by the Housing & Urban Development Department, has come into immediate effect, superseding all previous orders, notifications, and memoranda on the subject.

Under the revised delegation of financial powers, the Managing Directors of Bhubaneswar Smart City Limited (BSCL) and Rourkela Smart City Limited (RSCL) have been granted financial powers at par with the Commissioners of Municipal Corporations.

For Municipal Corporations, the financial limit of Commissioners for the payment of works bills, purchase bills, and office contingent bills has been enhanced to ₹1 crore, up from ₹50 lakh in Bhubaneswar Municipal Corporation and ₹15 lakh in the other Municipal Corporations. Bills exceeding ₹1 crore will require approval of the Municipal Corporation. Commissioners have also been delegated full powers for the payment of salary and pension bills.

The financial limit for granting administrative approval to works and projects has also been increased from ₹2 crore to ₹3 crore. Projects costing more than ₹3 crore and up to ₹4 crore will be approved by the Standing Committee on Contracts, while those above ₹4 crore and up to ₹5 crore will require approval of the Municipal Corporation. Projects exceeding ₹5 crore will continue to require approval of the Administrative Department.

For Municipalities and Notified Area Councils (NACs), the payment authority of Executive Officers has been doubled from ₹10 lakh to ₹20 lakh. Bills exceeding ₹20 lakh will require the joint signatures of the Executive Officer and the Chairman. Executive Officers have also been vested with full powers to clear salary and pension bills.

Similarly, the financial limit for granting administrative approval to works and projects in Municipalities and NACs has been increased from ₹10 lakh to ₹20 lakh. Projects above ₹20 lakh and up to ₹3 crore will be approved by the Municipal Council or NAC Council, while proposals exceeding ₹3 crore will continue to require approval of the Administrative Department.

The revised delegation of financial powers is expected to significantly strengthen urban local governance by providing greater financial autonomy to local institutions, reducing procedural delays, and enabling faster execution of civic infrastructure and public welfare projects across Odisha.