Bhubaneswar: In a significant administrative reform aimed at accelerating urban development, expediting decision-making, and improving governance across urban areas, the Government of Odisha has revised the delegation of financial powers for Urban Local Bodies (ULBs) and Smart Cities Ltd. The revised framework, notified by the Housing & Urban Development Department comes into force with immediate effect, superseding all previous orders, notifications, and memoranda on the subject.
As part of the revised delegation, the financial powers of the Managing Directors of Bhubaneswar Smart City Limited (BSCL) and Rourkela Smart City Limited (RSCL) have been brought at par with those of Commissioners of Municipal Corporations.
For Municipal Corporations, the financial limit of Commissioners for payment of works bills, purchase bills, and office contingent bills has been enhanced to ₹1 crore. Earlier, the limit was ₹50 lakh in Bhubaneswar Municipal Corporation and ₹15 lakh in other Municipal Corporations. Bills exceeding ₹1 crore will be placed before the Municipal Corporation for approval. Commissioners have also been delegated full powers for the payment of salary and pension bills. Further, the financial limit for granting administrative approval to works and projects has been increased from ₹2 crore to ₹3 crore. Projects above ₹3 crore and up to ₹4 crore will be approved by the Standing Committee on Contracts, those above ₹4 crore and up to ₹5 crore by the Municipal Corporation, while proposals exceeding ₹5 crore will continue to require approval of the Administrative Department.
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.
The revised delegation of financial powers is expected to significantly strengthen local governance by empowering urban local institutions with greater financial autonomy, reducing procedural delays, and facilitating the timely execution of civic infrastructure and public welfare projects across Odisha
