In a major administrative reform aimed at strengthening urban governance and speeding up infrastructure development, the Odisha government has revised the delegation of financial powers for Urban Local Bodies (ULBs) and Smart City authorities across the state.
The revised framework, notified by the Housing and Urban Development Department on July 23, 2026, comes into effect immediately, replacing all previous orders, notifications and memoranda related to the delegation of financial powers.
Smart City MDs Get Enhanced Financial Powers
Under the new framework, the Managing Directors of Bhubaneswar Smart City Limited (BSCL) and Rourkela Smart City Limited (RSCL) will now enjoy financial powers equivalent to those of Municipal Corporation Commissioners.
The move is expected to enable faster decision-making and improve the execution of urban infrastructure projects.
Higher Financial Limits for Municipal Corporations
The government has significantly enhanced the financial powers of Municipal Corporation Commissioners.
Key changes include:
- The limit for approving payments towards works, purchases and office contingent bills has been increased to ₹1 crore.
- Earlier, the payment limit was ₹50 lakh in the Bhubaneswar Municipal Corporation and ₹15 lakh in other Municipal Corporations.
- Bills exceeding ₹1 crore will require approval from the respective Municipal Corporation.
- Commissioners have been granted full authority to approve salary and pension payments.
The financial limit for granting administrative approval to development works has also been revised:
- Up to ₹3 crore – Commissioner
- Above ₹3 crore and up to ₹4 crore – Standing Committee on Contracts
- Above ₹4 crore and up to ₹5 crore – Municipal Corporation
- Above ₹5 crore – Administrative Department
Municipalities and NACs Also Receive Greater Autonomy
For Municipalities and Notified Area Councils (NACs), the payment authority of Executive Officers has been doubled from ₹10 lakh to ₹20 lakh.
Under the revised rules:
- Bills above ₹20 lakh will require the joint signatures of the Executive Officer and the Chairman.
- Executive Officers have been granted full powers to clear salary and pension bills.
- The financial limit for administrative approval of works has also been increased from ₹10 lakh to ₹20 lakh.
Project approvals will now follow this structure:
- Up to ₹20 lakh – Executive Officer
- Above ₹20 lakh and up to ₹3 crore – Municipal or NAC Council
- Above ₹3 crore – Administrative Department
Aim to Improve Urban Governance
The state government said the revised delegation of financial powers is intended to provide Urban Local Bodies with greater financial autonomy, reduce procedural delays and ensure the timely execution of civic infrastructure and public welfare projects across Odisha.
The reform is expected to improve administrative efficiency and accelerate the implementation of development initiatives in urban areas.
