Bhubaneswar: The Odisha Cabinet, chaired by Chief Minister Mohan Charan Majhi, has approved eleven proposals spanning urban development, tribal livelihoods, irrigation expansion, farm mechanisation, GST alignment and urban housing support, aimed at accelerating economic growth, inclusive development and strengthening of infrastructure across the state.
In a significant move to reshape Odisha’s urban and industrial landscape in line with Odisha Vision 2036 and 2047 – Viksit Odisha for Viksit Bharat, the Cabinet cleared amendments to the Odisha Development Authorities (ODA) Act, 1982, through the proposed Odisha Development Authorities (Amendment) Bill, 2026. The changes will enable the creation of Economic Region Development Authorities (ERDAs) as overarching statutory bodies to ensure coordinated planning and governance of multi-district urban agglomerations functioning as integrated economic corridors.
These regions will feature modern infrastructure, employment hubs, efficient mobility and seamless service delivery beyond individual municipal boundaries. Key identified clusters include Bhubaneswar-Kataka-Puri-Paradip Economic Region (BCPPER/BKPPER), BargadaJharsuguda-Sambalpur, Brahmapur-Chhatrapur-Gopalpur and Jeypore-Koraput-Sunabeda, among others to be notified in phases.
Chief Secretary Anu Garg said an economic plan for BCPPER has already been prepared in collaboration with NITI Aayog as a pilot. The Union Budget 2026-27 has recognised BCPPER among four national City Economic Regions serving as engines of growth, alongside Varanasi, Surat and Visakhapatnam. “While multiple development authorities currently function within different urban areas, there is no overarching statutory institution to coordinate planning and implementation across an entire economic region. The proposed ERDAs will help bridge this gap by providing seamless coordination among various development authorities operating within a region,” Garg said.
Once the bill is cleared by the Odisha Assembly, BKPPER, which integrates ports, industrial hubs, urban centres, religious and cultural destinations, and logistics networks into a unified economic geography, will become the state’s first City Economic Region.
The Cabinet also approved Mukhya Mantri Janajati Jeevika Mission (MMJJM) 2.0, the expanded second phase of the state’s flagship tribal livelihood programme under the ST&SC Development, Minorities and Backward Classes Welfare Department.
Building on the first phase that covered about 1.5 lakh households in 13 districts, the new phase will benefit eight lakh tribal households, including all Particularly Vulnerable Tribal Group (PVTG) families, across 19 districts encompassing 134 Tribal Sub-Plan and Micro Project Area blocks and 23 Integrated Tribal Development Agencies.
Implemented from 2026-27 to 2030-31 with a fully state-funded outlay of Rs 2,995 crore, the mission will enhance incomes and well-being through farm, off-farm and non-farm interventions covering agriculture, horticulture, livestock, fisheries, sericulture, forest-based enterprises, non-timber forest produce value chains, traditional arts and crafts, handloom, handicrafts and rural entrepreneurship. It emphasises strengthening community institutions, entrepreneurship, value addition, market linkages and critical infrastructure.
Under a beneficiary-centric approach, eligible households can select activities suited to local resources and interests, receiving Rs 30,000 per household in two instalments via Direct Benefit Transfer, alongside support for common facilities, post-harvest infrastructure, storage, processing and marketing systems.
Further, the Cabinet sanctioned four major irrigation packages under the Integrated Anandapur Barrage Project and the Parbati Giri Mega Lift Irrigation Scheme, involving a combined investment of over Rs 600 crore to expand or strengthen irrigation potential over nearly 24,000 hectares and benefit more than 130 villages in Baleshwar, Khordha, Puri, Rayagada and Gajapati districts with broader Anandapur benefits extending to Kendujhar.
Under the Anandapur Barrage Project—designed ultimately for 60,000 hectares—one package costing Rs 145.71 crore (plus Rs 7.30 crore five-year O&M) will cover over 7,000 hectares under the Salandi Left Main Canal in Baleshwar, while a second package of Rs 112.52 crore (plus Rs 5.64 crore O&M) will irrigate 5,052 hectares in Nilagiri, Soro, Remuna and Baleshwar Sadar blocks via underground gravity-flow pipelines, both targeted for completion in 24 months.
For the Parbati Giri scheme, one cluster of five lift irrigation projects costing Rs 234 crore (plus Rs 21 crore 15-year O&M) will create potential for about 7,700 hectares benefiting 92 villages in Khordha and Puri, while another cluster of four projects costing Rs 133 crore (plus Rs 12 crore O&M) will serve about 4,050 hectares across 29 villages in Rayagada and nine in Gajapati.
These initiatives promote micro-irrigation and encourage diversification from water-intensive paddy to higher-value cash crops to strengthen rural livelihoods.
The Cabinet extended the state sector scheme for Popularisation of Agricultural Implements, Equipment and Diesel Pump Sets under the Department of Agriculture and Farmers’ Empowerment for another five years from 2026-27 to 2030-31, with an estimated outlay of Rs 2,200 crore expected to benefit around 3.79 lakh farmers. Building on the previous phase (2021-22 to 2025-26) that assisted 2,54,774 farmers, the scheme provides subsidies for tractors, rotavators, power tillers, combine harvesters, post-harvest equipment and related machinery to enhance operational efficiency, boost crop productivity, reduce physical drudgery and promote sustainable farm mechanisation across Odisha.A
dditionally, the Cabinet approved a proposal from the Finance Department to amend the Odisha Goods and Services Tax (OGST) Act, 2017, to align it with the Central Goods and Services Tax (CGST) Act, 2017, as amended by the Finance Act, 2026. It also cleared the Odisha State Legal Services (OSLS) Cadre Rules, 2026, from the Law Department, and endorsed the PMAY-U BANDHU initiative of the Housing and Urban Development Department to complement PMAY-U 2.0 and ensure universal coverage of housing for all eligible urban families.
