Odisha Cabinet Approves ‘New City Development Scheme’ to Boost Urban Growth
800-acre project planned under Bhubaneswar Development Plan Area, Rs 8,179 crore investment projected over 15 years
Bhubaneswar: The Odisha Cabinet cleared five major proposals, with the highlight being the in-principle approval of the ambitious “New City Development Scheme.” The project, spread over nearly 800 acres across Gothapatna, Malipada, and Daspur mauzas, seeks to create a modern, sustainable, and inclusive urban hub within the Bhubaneswar Development Plan Area (BDPA).
The decision was taken during a cabinet meeting chaired by Chief Minister Mohan Charan Majhi at the Lok Seva Bhawan. Officials described the new township as a multi-economic growth zone designed to align with the state’s long-term development vision, Vikshit Odisha 2036.
Inclusive urban vision
According to the official statement, the New City will aim to achieve “Housing for All” by offering diverse residential options tailored to the affordability and needs of different income groups. The township will also prioritize community-centric spaces and sustainable infrastructure.
The plan includes the development of world-class facilities such as MICE (Meetings, Incentives, Conferences, and Exhibitions) centres, plug-and-play hubs for innovation and startups, advanced data management centres, and large green lungs like central forest parks. Public plazas, open spaces, and recreational zones will also be part of the blueprint to encourage civic engagement and improve quality of life.
Role of BDA and global collaboration
The Bhubaneswar Development Authority (BDA) has been designated as the nodal agency for implementing the scheme. The project is currently in its planning and early execution stages.
As part of preparatory work, BDA signed a Memorandum of Understanding (MoU) with a private consultancy firm on January 17 in the presence of the President of Singapore and the Odisha Chief Minister. The firm will provide expertise in preparing the master plan and offering advisory support for world-class urban infrastructure in the Greenfield Township.
For full-scale execution, BDA has projected an investment requirement of ₹8,179 crore over the next 15 years, which will combine public and private sector funding.
Financial roadmap
The Cabinet approved an initial allocation of ₹1,342 crore from the state budget for the first five years (2025-26 to 2029-30). These funds will be utilised for land acquisition, construction of arterial roads, creation of core utility infrastructure, setting up public amenities, and administrative contingencies.
Officials said the phased investment approach would ensure timely execution while allowing flexibility to incorporate emerging technologies and urban planning practices.
Other Cabinet decisions
In another significant move, the Odisha Cabinet also approved amendments to the Odisha Panchayat Samiti Accounting Procedure Rules, 2002. The changes aim to speed up developmental projects and improve efficiency in grassroots governance.
The amendments will expand the financial powers of officers in granting technical sanctions and administrative approvals, thereby reducing delays and ensuring faster implementation of schemes.
According to officials, this decision is expected to significantly enhance the capacity of Panchayat Samitis to execute welfare projects and infrastructure development at the block level.
A step towards Vikshit Odisha 2036
The Cabinet’s twin focus on futuristic urbanisation through the New City Development Scheme and strengthening grassroots governance through Panchayat reforms reflects the government’s balanced approach to development. While the township project seeks to position Bhubaneswar as a hub of innovation and sustainable growth, the Panchayat reforms are designed to ensure that rural and semi-urban areas are not left behind in the state’s development journey.
The government has called the New City Development Scheme a “transformational project” that will not only decongest Bhubaneswar but also create new economic and social opportunities for citizens. Public consultations and stakeholder participation are expected to be part of the project rollout in the coming months.
With these approvals, Odisha has reaffirmed its intent to create a model of inclusive development that connects its vision of Vikshit Odisha 2036 with actionable projects at both the urban and grassroots levels.
