In a major administrative reform aimed at eliminating delays and bringing greater transparency to rural development projects, the Government of Odisha’s Panchayati Raj & Drinking Water Department has approved a comprehensive Standard Operating Procedure (SOP) for finalising cement and steel rates.
The new mechanism will be uniformly adopted across all districts for use in SECURESoft, PPMS and other departmental works.
The move comes after several districts reported difficulties in obtaining quarterly cement and steel rates from the Works Department, which primarily executes projects through tenders and does not maintain regular rate schedules.
An interim arrangement had been in place since March 2026, but the government has now institutionalised a clear, accountable and time-bound process.
District-Level Committee for Rate Finalisation
A dedicated District-Level Committee will now decide cement and steel rates for the entire district.
The committee comprises:
- Collector of the District (Chairman)
- COO-cum-EO, Zilla Parishad (Member Convenor)
- Additional EO (Technical), Zilla Parishad (Member)
- One Superintending Engineer/Executive Engineer from R&B or RD division (Member)
- Two Block Development Officers (Members)
- Two Assistant Executive Engineers from Blocks (Members)
All rates will be finalised under the direct supervision of the Collector, who will bear responsibility for any erroneous decisions.
Transparent Process for Cement Rates
Zilla Parishads will directly collect quotations from cement manufacturing companies that have their own production units in Odisha. The approved rate will be the average factory price of at least three such manufacturers. For calculation purposes, the weight of cement has been fixed at 14.30 quintals per cubic metre.
Quality-First Approach for Steel Rates
Steel rates will primarily be based on prices fixed by SAIL, collected directly from the SAIL website. In case of non-availability, the average factory price of at least three manufacturers notified by the Works Department will be considered. Strict quality norms have been mandated:
- Reinforcement steel must conform to IS: 1786
- Structural steel must conform to IS: 2062
- Only steel from established, reliable, indigenous primary producers with Integrated Steel Plants (using iron ore as raw material) will be permitted
- Rerolled steel is strictly prohibited
Independent tests can be conducted wherever required to ensure compliance.
Quarterly Timeline and Accountability
The District Level Committee will meet and finalise rates every quarter. Approved rates, along with signed committee proceedings, collected quotations and calculation sheets, must be submitted to the Panchayati Raj & Drinking Water Department by the 1st of April, July, October and January.
The finalised rates will be uploaded at the state level in SECURESoft and PPMS. All districts will mandatorily adopt these rates for their works. Lead charges may be factored in wherever necessary.
All previous instructions on the subject stand cancelled.
This SOP is expected to bring uniformity in material costing, reduce project delays, ensure better quality control and promote transparent procurement practices across Odisha’s rural infrastructure development ecosystem.
