Bhubaneswar: In a major administrative reform aimed at improving urban governance and speeding up development projects, the Odisha government has significantly enhanced the financial powers of Urban Local Bodies (ULBs) and Smart City authorities across the state.

The Housing and Urban Development Department has issued a revised framework delegating higher financial powers to Municipal Corporations, Municipalities, Notified Area Councils (NACs), and Smart City Limited authorities. The new provisions have come into effect immediately, replacing all earlier orders, notifications, and memoranda on the subject.

Under the revised framework, the financial powers of the Managing Directors of Bhubaneswar Smart City Limited (BSCL) and Rourkela Smart City Limited (RSCL) have been brought on par with those of Municipal Corporation Commissioners.

For Municipal Corporations, the payment limit for Commissioners towards works bills, purchase bills, and office contingent bills has been increased to ₹1 crore. Previously, the limit was ₹50 lakh in Bhubaneswar Municipal Corporation and ₹15 lakh in other Municipal Corporations. Bills exceeding ₹1 crore will require approval of the Municipal Corporation.

Commissioners have also been given full authority to clear salary and pension bills. In addition, their power to grant administrative approval for works and development projects has been raised from ₹2 crore to ₹3 crore.

Under the revised approval mechanism, projects costing more than ₹3 crore and up to ₹4 crore will be approved by the Standing Committee on Contracts. Projects above ₹4 crore and up to ₹5 crore will require approval of the Municipal Corporation, while proposals exceeding ₹5 crore will continue to need clearance from the Administrative Department.

For Municipalities and NACs, the payment authority of Executive Officers has been doubled from ₹10 lakh to ₹20 lakh. Bills above ₹20 lakh will require the joint signatures of the Executive Officer and the Chairman.

Executive Officers have also been granted full powers to release salary and pension bills. Their authority to grant administrative approval for works and projects has similarly been increased from ₹10 lakh to ₹20 lakh.

Projects costing above ₹20 lakh and up to ₹3 crore will now be approved by the Municipal Council or NAC Council. Any proposal exceeding ₹3 crore will continue to require approval from the Administrative Department.