Odisha Government to Establish 21 New Urban Councils
Move aimed at strengthening urban governance and ensuring better civic amenities in fast-growing areas
Bhubaneswar – In a major step toward strengthening urban governance, the Odisha government has decided to establish 21 new Notified Area Councils (NACs) across the state. The decision reflects the state’s commitment to addressing the rapid pace of urbanisation and ensuring that civic amenities keep pace with the growing needs of semi-urban and peri-urban areas.
The new NACs will bring small but expanding towns under an organised system of municipal administration, thereby improving service delivery in areas such as sanitation, drinking water supply, street lighting, drainage, and waste management. Officials said the move would also help streamline land use, infrastructure development, and local economic growth.
Odisha has been witnessing significant demographic shifts, with many rural settlements gradually transforming into semi-urban clusters due to improved connectivity, industrialisation, and migration. These areas often face the challenges of urbanisation without having the benefit of structured municipal governance. By notifying 21 new NACs, the state government aims to bridge this gap. The decision will empower local bodies to mobilise resources, plan systematically for development, and execute welfare schemes more effectively. It will also allow these regions to access state and central government funds meant for urban development.
A Notified Area Council functions as a transitional form of local government for emerging urban areas. Unlike a municipality, which is established in fully urbanised regions, an NAC governs smaller towns that are in the early stages of urban development. NACs are entrusted with a wide range of responsibilities including the maintenance of basic civic services such as roads, drains, and water supply, regulation of construction and land use, management of waste and sanitation systems, and providing support for education, health, and livelihood-related schemes at the local level. Officials explained that bringing new urban centres under NACs will lead to more accountability and citizen participation in governance.
The establishment of new NACs is expected to ensure systematic urban planning in fast-growing areas, improve access to state and central development funds, and generate employment opportunities through urban infrastructure projects. It will also enhance the delivery of welfare schemes such as housing, healthcare, and livelihood support. Furthermore, the initiative will strengthen the tax base for local bodies, enabling more self-reliant civic governance. Urban development experts note that this move is especially important in the context of Odisha’s growing industrial corridors and improved transportation networks, which have accelerated the growth of small towns.
According to officials, the Housing and Urban Development Department will oversee the establishment of the new NACs, including the demarcation of boundaries, identification of administrative offices, and appointment of key staff. A phased approach will be adopted to ensure that each NAC becomes operational with adequate resources and infrastructure. The state government is also expected to provide transitional support to the newly created NACs until they are able to generate sufficient revenue through local taxes, fees, and other sources.
With this decision, Odisha will expand its network of urban local bodies significantly, reflecting the state’s emphasis on inclusive and balanced development. The government has reiterated that its focus is not only on large cities like Bhubaneswar, Cuttack, and Rourkela but also on smaller towns that are emerging as growth centres. By setting up 21 new NACs, the state aims to create a robust framework for managing urbanisation, ensuring better quality of life for citizens, and promoting sustainable growth in the coming years.
