Urban Development / Odisha Govt Enhances Financial Powers of Urban Local Bodies, Smart Cities

Bhubaneswar, July 23: The Odisha government has revised the delegation of financial powers for Urban Local Bodies (ULBs) and the Bhubaneswar and Rourkela smart cities, granting them greater autonomy in financial decision-making, officials said on Thursday.

The Housing & Urban Development Department notified the new framework, which has immediate effect, superseding all previous orders.

ସହରାଞ୍ଚଳର ବିକାଶ ପ୍ରକ୍ରିୟାକୁ ଅଧିକ କ୍ରିୟାଶୀଳ କରିବା, ନିଷ୍ପତ୍ତି ଗ୍ରହଣ ପ୍ରକ୍ରିୟାକୁ ସହଜ କରିବା ଏବଂ ପୌରାଞ୍ଚଳ ଗୁଡ଼ିକରେ ଶାସନ ବ୍ୟବସ୍ଥାରେ ସୁଧାର ଆଣିବା ଲକ୍ଷ୍ୟରେ ରାଜ୍ୟ ସରକାର ଏକ ଗୁରୁତ୍ୱପୂର୍ଣ୍ଣ ପ୍ରଶାସନିକ ସଂସ୍କାର ଆଣିଛନ୍ତି । ଏହି ନୂତନ ବ୍ୟବସ୍ଥା ଅଧୀନରେ ପୌରସଂସ୍ଥା, ମହାନଗର ନିଗମ ଏବଂ ସ୍ମାର୍ଟ ସିଟି ଲିମିଟେଡ୍…

— CMO Odisha (@CMO_Odisha) July 23, 2026

Under the revised norms, the managing directors of Bhubaneswar Smart City Limited (BSCL) and Rourkela Smart City Limited (RSCL) will now exercise powers equivalent to municipal corporation commissioners.

For Municipal Corporations, the financial limit for commissioners to clear works bills, purchase bills, and contingent bills has been doubled to Rs1 crore. Bills exceeding this threshold will require approval from the municipal corporation. Commissioners have also been delegated full authority to process salary and pension bills.

The financial ceiling for administrative approval of works and projects has been raised from Rs2 crore to Rs3 crore. Projects between Rs3 crore and Rs4 crore will be cleared by the Standing Committee on Contracts, those between Rs4 crore and Rs5 crore by the municipal council, while proposals above Rs5 crore will continue to need departmental approval.

For Municipalities and Notified Area Councils (NACs), the payment authority of executive officers has been enhanced from Rs10 lakh to Rs20 lakh. Bills beyond this limit will require joint signatures of the executive officer and chairman.

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Similarly, the administrative approval limit for projects has been doubled to Rs20 lakh. Projects above Rs20 lakh and up to Rs3 crore will be sanctioned by the municipal council or NAC, while those exceeding Rs3 crore will need departmental clearance.

Officials said the revised delegation of financial powers is expected to strengthen local governance by empowering ULBs with greater financial autonomy, reducing procedural delays, and ensuring timely execution of civic infrastructure and welfare projects across the state.