Bhubaneswar: The Odisha government on Thursday expanded the financial authority of Urban Local Bodies (ULBs) and Smart Cities companies to speed up urban development, reduce bureaucratic delays, and strengthen local decision-making.
The Housing & Urban Development Department issued a fresh notification on the delegation of financial powers, which took immediate effect and overrides all earlier orders. The reforms aim to give city administrations greater autonomy while maintaining oversight for larger projects.
Under the new framework, the Managing Directors of Bhubaneswar Smart City Limited (BSCL) and Rourkela Smart City Limited (RSCL) have been granted financial powers equivalent to those of Municipal Corporation Commissioners.
Enhanced Powers for Municipal Corporations
Commissioners of Municipal Corporations can now sanction payments for work bills, purchase bills, and office contingent bills up to ₹1 crore — a substantial increase from the previous limits of ₹50 lakh in Bhubaneswar Municipal Corporation and ₹15 lakh in other corporations. Any bills exceeding ₹1 crore must be placed before the Municipal Corporation for approval.
Commissioners have also been delegated full powers for the payment of salary and pension bills.
Additionally, the limit for granting administrative approval to works and projects has been raised from ₹2 crore to ₹3 crore. Projects costing between ₹3 crore and ₹4 crore will be approved by the Standing Committee on Contracts. Those between ₹4 crore and ₹5 crore require approval from the Municipal Corporation. Proposals above ₹5 crore will continue to need clearance from the Administrative Department.
Changes for Municipalities and Notified Area Councils (NACs)
The payment authority of Executive Officers has been enhanced from ₹10 lakh to ₹20 lakh. Bills exceeding ₹20 lakh will require the joint signatures of the Executive Officer and the Chairman. Executive Officers have also been granted full powers for payment of salary and pension bills. The financial limit for administrative approval of works and projects has similarly been increased from ₹10 lakh to ₹20 lakh. Projects above ₹20 lakh and up to ₹3 crore will be approved by the Municipal Council or NAC Council, while those exceeding ₹3 crore will require approval of the Administrative Department.
Expected Impact
Officials expect the revised delegation of powers to empower urban local institutions will enable faster execution of civic infrastructure projects, and improve delivery of public services across the state. By reducing procedural bottlenecks, the government hopes to accelerate development in cities and towns while promoting more responsive and efficient urban governance.
