THEBUSINESSBYTES BUREAU
BHUBANESWAR, FEBRUARY 25, 2026
In a landmark step poised to reshape the state’s development trajectory,
the Odisha Government has earmarked ₹200 crore in the 2026–27 Budget
for an ambitious Rural–Urban Transition initiative. The forward-looking
programme is designed to steer Odisha’s rapidly expanding growth corridors
toward structured, sustainable, and inclusive urbanisation.
With economic activity intensifying across the state, several peri-urban
pockets and high-growth Gram Panchayats are organically transforming into urban
clusters. Recognising the risks of unplanned expansion, the Housing & Urban
Development (H&UD) Department has introduced a proactive and science-based
framework to manage this transition in a systematic manner.
Unlike conventional approaches that focus on reclassification after areas
attain urban status, the new initiative emphasises “governance readiness.” The
objective is to equip emerging growth centres with essential infrastructure and
service delivery standards aligned with urban aspirations, even before they are
formally notified as towns.
The framework centres on the systematic development of peri-urban belts
to prevent haphazard sprawl, early provision of urban-grade civic amenities
such as drainage, solid waste management, and street lighting, regulated land
use planning to ensure climate-resilient and balanced growth, and strengthening
local administrative systems to smoothly transition from rural to urban
governance models.
Dr. Krushna Chandra Mahapatra, Minister, Housing & Urban Development,
said, “Odisha stands at a decisive moment. Urbanization is inevitable, but
unplanned urbanization is avoidable. With this ₹200 crore corpus, we are
choosing foresight over reaction. We are building well-planned urban ecosystems today to reflect the
aspirations of a progressive Odisha tomorrow.”
Usha Padhee, Additional Chief Secretary, H&UD, stated, “Our objective is to institutionalize a structured pathway for peri-urban areas to evolve into vibrant centers without disruption. By utilizing data-driven spatial planning and infrastructure benchmarking, we ensure that growth remains regulated, sustainable, and citizen-centric.”
The initiative will leverage inter-departmental convergence and advanced technological integration to monitor settlement patterns in real time. By bridging the rural-urban continuum, Odisha seeks to ease infrastructure pressures on existing cities while fostering resilient, future-ready growth centres across the state.
