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Odisha Bets Big On Hospitality: Rs 1.5K Cr Scheme To Ready 5500 Acres For Investors

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Odisha Bets Big On Hospitality: Rs 1.5K Cr Scheme To Ready 5500 Acres For Investors

by OB Bureau
June 9, 2026
in Odisha, Policy & Politics, Top Headlines
Reading Time: 3 mins read
Odisha Bets Big On Hospitality: Rs 1.5K Cr Scheme To Ready 5500 Acres For Investors
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Bhubaneswar: In a significant push towards economic development and citizen welfare, the Odisha State Cabinet, chaired by Chief Minister Mohan Charan Majhi, on Monday, approved a series of transformative initiatives spanning tourism infrastructure, irrigation, affordable housing, water supply, and urban rejuvenation.

Major Boost for Tourism and Hospitality

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A flagship decision is the approval of the Land Bank for Hospitality Infrastructure Scheme under the Tourism Department. The initiative will identify and develop approximately 5,500 acres of government and private land across premier destinations including Puri, Konark Sun Temple, Chilika Lake, Dhauli, Hirakud Dam, Satkosia Tiger Reserve, Similipal and Bhitarkanika National Parks, Daringbadi, and several emerging spots like the Buddhist circuit and Talsari.

Announcing the decisions, Chief Secretary Anu Garg highlighted that the scheme aims to create ready-to-invest land parcels for hotels, resorts, eco-tourism projects, wellness retreats, and convention centres.

With an outlay of ₹1,500 crore (₹300 crore annually) over five years from 2026-27 to 2030-31, it is expected to attract large-scale private investment, generate employment, stimulate local economies, and establish Odisha as a leading eco-cultural tourism destination in Asia.

Urban Development and Housing Initiatives

To improve quality of life in the capital, the Cabinet approved the 24×7 water supply project for Bhubaneswar’s new urban zones under BDA’s Town Planning Schemes. Set for completion by April 2028, the ₹112.31 crore initiative will be executed by WATCO on an EPC basis, including five years of operation and maintenance. The project will modernise water infrastructure in emerging urban zones by drawing from the Mahanadi River, deploying extensive pipeline networks, constructing elevated reservoirs, and integrating advanced SCADA automation.

In a landmark move for urban renewal, the government sanctioned the ₹500 crore Waterfront Development Scheme over five years. Implemented by the Housing and Urban Development Department, it will rejuvenate riverfronts and water bodies across cities, focusing on ecological restoration, climate resilience, heritage conservation, tourism promotion, and creation of inclusive, vibrant public spaces.

The Chief Secretary highlighted that the initiative will revitalize river ecosystems, enhance urban livability, and boost tourism and cultural heritage. Additionally, the scheme strengthens climate resilience through advanced flood management while championing social inclusion by providing safe, accessible public spaces for everyone.

Relaxation of Stamp Duty & Registration Fees for EWS Beneficiaries

Additionally, the Cabinet approved a sharp reduction in stamp duty and registration fees for Economically Weaker Section (EWS) beneficiaries of Pradhan Mantri Awas Yojana-Urban (PMAY-U) 2.0 as well as other state-run affordable housing schemes in such areas. Rates will drop sharply from 6-7% to 0.6-0.7%, depending on gender of the owner, providing major financial relief and accelerating affordable housing for urban poor families in line with central government guidelines.

The decision aligns with Union housing ministry guidelines mandating the states to cap such charges below 1% for dwelling units up to 60sqm under PMAY-U 2.0.

Also Read: Odisha Approves Rs 210 Cr Women Workers’ Hostel Project; Check Other Decisions

Irrigation and Water Security Projects
In a major step for agricultural prosperity, the Cabinet approved the Brutang Irrigation Project, the state’s 11th major irrigation initiative. To be implemented in Nayagarh district’s Dasapalla, Nuagaon, Nayagarh, Khandapada, and Odagaon blocks, the ₹194.07 crore project (excluding GST) includes construction of a 552-metre earth dam and saddle spillway near Manjari village, along with a robust distribution network. Expected to be completed in 30 months, it will provide assured irrigation to 23,300 hectares across 309 villages in a drought-prone region, significantly enhancing farm productivity and improving farmers’ livelihoods.
The Cabinet also cleared a new bridge-cum-barrage on the Mahanadi downstream of the old Ayodhya Sagar weir in Sambalpur at a cost of ₹440.33 crore. This 30-month project will strengthen drinking water supply, boost fisheries and local livelihoods, and enhance tourism potential near the Samaleswari Temple.
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