BDA's ₹8,169-Crore New City Plan for Bhubaneswar Outskirts: The November 2024 Decision and What Followed

What was decided, and by whom

On 20 November 2024, Housing and Urban Development Minister Krushna Chandra Mahapatra told the media that the Bhubaneswar Development Authority (BDA) had prepared a plan for a 'New City' and had already started the land acquisition process. The Bhubaneswar Development Authority (BDA) has prepared an Rs 8,000 crore plan for the construction of the 'New City' on 821.964 acres on the outskirts of the capital city, and the BDA has already started the land acquisition process for the project. The financial and technical details were laid out by BDA Vice-Chairman Dr N. Thirumala Naik, who said the proposed project would require an investment of Rs 8,169 crore, of which Rs 6,069 crore was earmarked for built-up space and another Rs 2,100 crore for infrastructure, with the Centre providing financial aid. He also noted that a team from the Centre had conducted a survey of the project recently.

This November 2024 statement was an administrative announcement of a prepared plan and the start of acquisition — not yet a formal state Cabinet approval. That formal step came ten months later.

Location and land parcels

The New City has been planned in Malipada, Daspur and Gothapatana areas on Bhubaneswar city outskirts, with residential capacity for around 2 lakh people. It is designed as a solar city, and BDA officials said the city has been targeted to draw around 60 percent of its consumption from solar power.

The site falls within the Bhubaneswar Development Plan Area (BDPA). When the state Cabinet took up the scheme in September 2025, the land area was described slightly differently: the New City will come up on 800 acres of land in Gothapatna, Malipada and Daspur mouzas in the Odisha capital. Both the 821.964-acre figure (November 2024) and the rounded ~800-acre figure (September 2025 Cabinet note) refer to the same three-mouza footprint.

Financial structure of the decision

At the November 2024 announcement, the project cost was pegged at ₹8,169 crore, split between built-up space and infrastructure, with the Centre providing financial aid for the project. By the time the state Cabinet formally approved the scheme, the figure had been revised slightly and a phased public-funding commitment was attached: the Bhubaneswar Development Authority (BDA) was designated as the nodal agency for implementation, and the project requires investment to the tune of Rs 8,179 crore in the next 15 years, with the state government allocating Rs 1,342 crore in the first five years (2025-26 to 2029-30) for land acquisition, road construction, core utility infrastructure, public amenities and administrative contingencies.

Formal Cabinet approval — 10 September 2025

The scheme moved from ministerial announcement to a documented Cabinet decision on 10 September 2025. The Odisha State Cabinet, chaired by Chief Minister Mohan Charan Majhi, gave its in-principle approval to the 'New City Development' scheme on that Wednesday. Briefing reporters afterward, Chief Secretary Manoj Ahuja said the Cabinet, at its 26th meeting held at Lok Seva Bhawan, had approved the scheme, with the new city to be developed over nearly 800 acres within the BDPA, covering Gothapatna, Malipada and Daspur mouzas. The project is framed as a multi-economic growth zone aligned with the long-term vision 'Viksit Odisha 2036'.

The Cabinet order also set out the development model: the New City has been planned as a transit-oriented development, focusing on efficient public transport, reduced travel distances and seamless access to a well-integrated mix of land uses, aiming to ensure 'housing for all' by offering diverse housing options for all income groups based on affordability and necessity.

Singapore MoU and master-plan preparation

Ahead of the Cabinet decision, BDA had already signed a planning partnership. BDA Vice-Chairperson Chanchal Rana noted that a Memorandum of Understanding (MoU) between the BDA and Surbana Jurong was signed on January 17, 2025, during the visit of the President of Singapore to India. Under this agreement, Surbana Jurong will undertake the New City Master Plan, identifying priority projects across short-, medium- and long-term horizons, provide technical handholding for Detailed Project Reports, and prepare a comprehensive Urban Design Framework and Guidelines.

As of early 2026, planning work was progressing: the draft service area for the new city master plan had been finalized, with the service area to include preparation of the overall city structure and road guidelines. By May 2026, a stakeholder consultation and kick-off meeting was held, and the master plan is being prepared by Surbana Jurong Infrastructure Private Ltd, Singapore, while a market feasibility study has already been conducted with global consultancy JLL.

Connectivity component

The November 2024 announcement included a specific road commitment: a four-lane road will be constructed from Naka Gate Square to Kateni, alongside additional connecting roads to ease traffic congestion. Separately, BDA's authority meeting minutes list a road connecting Nuagaon-Kateni Road to the road passing through TP Scheme No. 08 and land identified for the New City among the CDP roads it approved for development.

Practical effect

For landowners in Gothapatna, Malipada and Daspur, the November 2024 announcement meant that BDA had legal authorisation to begin the land acquisition process on the identified acreage, ahead of the later formal Cabinet clearance. For investors and residents, the September 2025 Cabinet approval converted the project from an authority-level plan into a state government scheme with a designated nodal agency (BDA), a 15-year investment horizon, and a funded first phase (2025–26 to 2029–30). As of the most recent update found (May 2026), the project remains at the master-planning stage — the detailed master plan, project list and design guidelines from Surbana Jurong were still being finalised, and no operational infrastructure, plot allotment, or RERA registration had been reported.