On September 10, 2025, the Odisha state cabinet, under the leadership of Chief Minister Mohan Charan Majhi, took a decisive step toward shaping the future of Bhubaneswar by granting in-principle approval to an ambitious New City Development Scheme. This project, which aims to create a modern, inclusive, and sustainable urban hub, will unfold across nearly 800 acres of land in the mauzas of Gothapatna, Malipada, and Daspur, all within the Bhubaneswar Development Plan Area (BDPA).
The scale and vision of the New City are nothing short of transformative. According to multiple reports, including those from IANS and The New Indian Express, the project is aligned with the state’s long-term development blueprint, “Vikshit Odisha 2036.” The cabinet’s approval marks the beginning of a 15-year journey that is projected to require a total investment of Rs 8,179 crore, sourced from both public and private entities. Of this, an initial allocation of Rs 1,342 crore has been earmarked in the state budget for the first five years (2025-26 to 2029-30). These early funds will be channeled into land acquisition, road construction, core utility infrastructure, public amenities, and administrative contingencies, setting the groundwork for the city’s development.
The Bhubaneswar Development Authority (BDA) has been appointed as the nodal agency to implement the scheme. As of now, the project is in various stages of planning and early execution. A significant milestone was achieved on January 17, 2025, when the BDA signed a memorandum of understanding (MoU) with Singapore-based Surbana Jurong Infrastructure Private Limited (SJI). The signing ceremony was attended by the President of Singapore, Tharman Shanmugaratnam, and Odisha Chief Minister Mohan Charan Majhi, underscoring the international scope and prestige of the partnership. SJI will provide consultancy services for preparing the master plan and offer advisory support for urban infrastructure development in the new greenfield township.
What sets this New City apart is its comprehensive and forward-thinking design. As detailed by the Odisha government in official statements, the city is envisioned as a multi-economic growth zone that will absorb the pressures of rapid urbanization and a burgeoning population. The plan is rooted in the concept of transit-oriented development, prioritizing efficient public transport, reduced travel distances, and seamless integration of residential, commercial, and institutional land uses. This approach aims to ensure that the city is not only modern but also accessible and well-connected for all its residents.
One of the project’s most ambitious goals is to achieve “Housing for All.” The city will offer diverse and affordable housing options tailored to the needs and financial capabilities of every income group. This commitment to inclusivity is meant to ensure that the benefits of urban development are shared equitably—a vision that resonates with the broader goals of “Vikshit Odisha 2036.”
Infrastructure will be a hallmark of the New City. The plan includes state-of-the-art facilities for Meetings, Incentives, Conferences, and Exhibitions (MICE), innovation-based plug-and-play hubs, and advanced data management centers. These features are expected to attract business, foster innovation, and create employment opportunities, positioning Bhubaneswar as a vibrant economic node in eastern India.
But the planners aren’t stopping at bricks and mortar. Special emphasis is being placed on creative placemaking to foster community engagement and social well-being. Central forest parks, gateway plazas, and expansive public open spaces will be woven into the city’s fabric, providing residents with green lungs and spaces to gather, relax, and celebrate. According to statements from Chief Secretary Manoj Ahuja, “special emphasis will be placed on creative place making, with the design of central forest parks, gateway plazas and ample public open spaces to foster community engagement to meet the social needs of residents.”
Environmental sustainability and climate resilience are also high on the agenda. The city will embed smart and green infrastructure solutions throughout its design. This includes efficient energy systems, sustainable water management, and environmentally friendly construction practices. The goal is to create a city that not only thrives economically but also stands resilient in the face of climate challenges—a necessity in today’s rapidly changing world.
The cabinet’s decision comes at a time when Bhubaneswar, like many Indian cities, faces mounting pressures from urban migration and population growth. By planning proactively, the state hopes to avoid the pitfalls of haphazard urban expansion that have plagued other metropolitan regions. The project’s emphasis on integration, sustainability, and inclusivity could serve as a model for future urban development in India.
The New City Development Scheme is not the only reform to emerge from the latest cabinet meeting. In a move aimed at expediting developmental activities at the grassroots level, the Odisha government also approved amendments to the Odisha Panchayat Samiti Accounting Procedure Rules, 2002. These amendments significantly enhance the financial powers of officers for technical sanction and administrative approval. Block Development Officers can now pass bills for works worth up to Rs 10 lakh without requiring further countersignature from the chairman of the concerned Panchayat Samiti—a sharp increase from the previous limit of Rs 2 lakh. Similarly, the authority to accord administrative approval for plans and estimates for Panchayat Samiti projects has been delegated to the Chief Development Officer-cum-Executive Officer of the Zilla Parishad.
According to government sources, these changes are designed to streamline financial approvals and ensure smoother implementation of development schemes. Engineers, too, will have expanded authority, with the ability to accord technical sanctions for projects ranging from Rs 5 lakh up to Rs 4 crore, depending on their positions. While the government touts these reforms as essential for speeding up progress, some field-level Panchayati Raj Institute representatives have voiced concerns that their authority and financial control have been curtailed.
These policy shifts come in the run-up to the 2027 panchayat elections, a critical contest for both the Bharatiya Janata Party and the Biju Janata Dal as they vie for influence across Odisha’s rural landscape. The BJD currently holds dominance in panchayat samitis statewide, but the new rules may shift the dynamics of local governance and project delivery.
In a gesture highlighting transparency and accountability, Chief Minister Majhi also released a compilation of key decisions from the last 25 cabinet sessions, summarizing 149 resolutions across 34 departments. This move, according to The New Indian Express, underscores the government’s commitment to keeping the public informed about its policy direction and achievements.
As the New City Development Scheme advances from blueprint to reality, the eyes of Odisha—and indeed much of India—will be watching closely. The project’s success could set a new benchmark for urban planning, sustainability, and inclusive growth in the region. For now, the groundwork is being laid, both literally and figuratively, for a city that aspires to be a beacon of modernity, opportunity, and community in eastern India.
