Odisha Cabinet approves creation of new modern city within Bhubaneswar

The Mohan Majhi government has announced an ambitious new city development scheme within Bhubaneswar Development Plan Area (BDPA) over 800 acres of land with an estimated investment of ₹8,179 crore over the next 15 years.

A cabinet meeting chaired by Mr. Majhi on Wednesday (September 10, 2025) evening approved the proposal to create a modern and inclusive urban hub within BDPA.

Surbana Jurong Infrastructure Private Limited (SJI), a Singapore-based global urban, infrastructure and managed services consulting firm, has been roped in for consultancy service.

For preparation of the master plan and advisory support for urban infrastructure development in the greenfield township, a memorandum of understanding was signed between Bhubaneswar Development Authority and SJI in presence of Singapore President and Odisha Chief Minister on January 17, 2025.  

“For full-scale implementation, BDA has projected a total investment of ₹8,179 crore over the next 15 years, combining public and private funding,” said the State government in a statement.

The new city plan will encompass three villages Gothapatna, Malipada, and Daspur, which is envisioned as a multi-economic growth zone aligned with the state’s long-term development vision, ‘Vikshit Odisha 2036’, it said.

According to plan, the new city will usher in transit-oriented development, focusing on efficient public transport, reduced travel distances, and seamless access to a well-integrated mix of land uses. Besides, it aims to ensure ‘housing for all’ by offering diverse housing options for all income groups based on affordability and necessity.

“The city will feature state-of-the-art infrastructure, including MICE [meetings, incentives, conferences, and exhibitions] facilities, innovation-based plug-and-play hubs, and data management centers. Special emphasis will be placed on creative place making, with the design of central forest parks, gateway plazas, and ample public open spaces to foster community engagement and meet the social needs of residents,” the Cabinet note says.

Moreover, the project will also integrate smart and green infrastructure solutions to enhance climate resilience, environmental sustainability, and the overall well-being of citizens. The BDA has been designated as the nodal agency for implementing the scheme, which is currently in various stages of planning and early execution.

An initial allocation of ₹1,342 crore has been proposed from the State budget for the first five years (2025-26 to 2029-30), which will be utilised for land acquisition, road construction, core utility infrastructure, public amenities, and administrative contingencies.

In another significant decision, Odisha government has given more financial power to Block Development Officers which empowered the officials to pass bills of works worth ₹10 lakh without further countersignature of the chairman of the concerned Panchayat Samiti. Earlier, the amount was ₹2 lakh.

Further, the authority to accord administrative approval of plans and estimates for Panchayat Samiti projects has also been delegated to the Chief Development Officer-cum-Executive Officer of Zilla Parishad.

While Odisha government says it would help expedite financial approvals and ensure smooth implementation of developmental schemes, field level Panchayati Raj Institute public representatives are of the opinion that it has curtailed their authority and financial power.

Moreover, financial powers of officers for both technical sanction and administrative approval of developmental works have been enhanced. Engineers can now accord technical sanctions from ₹5 lakh to ₹4 crore depending on their positions.

The panchayat elections, which will be important for both Bharatiya Janata Party and Biju Janata Dal to showcase their grip over Odisha, will be held in 2027. Currently, the BJD has absolute domination in panchayat samitis across the State.