Odisha Cabinet Approves ₹8,179 Crore Bhubaneswar New City; 95% Land Under Government Control

What Happened: Cabinet Approves New City Scheme

The Odisha Cabinet, chaired by Chief Minister Mohan Charan Majhi, approved the 'New City Development' scheme at the 26th Cabinet meeting held at Lok Seva Bhawan, signalling the state government's commitment to building a modern, inclusive, and sustainable urban hub in the capital region.

The proposed new city will be developed over nearly 800 acres within the Bhubaneswar Development Plan Area (BDPA), covering Gothapatna, Malipada, and Daspur mouzas. The project is envisioned as a multi-economic growth zone aligned with the state's long-term vision Vikshit Odisha 2036.

The August Announcement: Land Survey and Feasibility Work

In August 2025, Chief Minister Majhi announced that the township is planned in Malipada, Daspur and Gothapatna, with housing capacity for two lakh residents and provision for solar-powered infrastructure. More than 95% of the land identified is already under government control, streamlining acquisition.

In January, the Bhubaneswar Development Authority signed a memorandum of understanding with a global real estate consultancy to prepare the master plan, and on Wednesday, housing and urban development officials met the consultancy's South Asia and regional leadership to discuss urban infrastructure and managed services.

Design Vision: Transit-Oriented, Multi-Income Housing

The new city will be developed as a transit-oriented township, with focus on efficient public transport, reduced travel distances, and seamless access to a well-integrated mix of land uses. It will ensure 'Housing for All' by offering diverse housing options for all income groups based on affordability and necessity.

The proposed township will boast state-of-the-art infrastructure, including MICE (Meetings, Incentives, Conferences, Exhibitions) facilities, innovation hubs, plug-and-play infrastructure, and data management centers.

Regional Integration: Connection to CRRR

The new city, connected to the CRRR, will expand the capital region to include Cuttack, Bhubaneswar, Dhenkanal, Choudwar and Banki. The CRRR project, pegged at an estimated cost of Rs 7000 crore, proposes the construction of a 111-kilometre, six-lane expressway around Bhubaneswar, and aims to seamlessly link the cities of Cuttack, Bhubaneswar, Khordah, and Choudwar while effectively decongesting internal city roads.

Investment and Implementation Timeline

The project entails an estimated investment of Rs 8,179 crore over 15 years, combining public and private funding. An initial allocation of Rs 1,342 crore has been earmarked in the state budget for 2025–26 to 2029–30 to cover land acquisition, road construction, core infrastructure, public amenities, and contingencies.

For the first phase of implementation, covering 2025-26 to 2029-30, the state government has proposed an allocation of Rs 1,342 crore from the state budget. These funds will be utilised for land acquisition, road construction, core utility services, public amenities, and administrative contingencies.

Next Steps: Master Plan and DPR Preparation

Housing and Urban Development Secretary Usha Padhee held a virtual meeting with the representatives of Surbana Jurong Infrastructure PTE Ltd., Singapore, with the meeting attended by Bhubaneswar Development Authority (BDA) Vice-Chairman Chanchal Rana, H&UD Additional Secretary Satrughna Kar, along with other senior officers of the H&UD Department and BDA.

Surbana Jurong will undertake projectisation of the New City Master Plan, identifying priority projects across short-, medium- and long-term horizons, with defined objectives, scope, timelines and schematic urban design. The firm will also provide technical handholding and support for preparation of Detailed Project Reports (DPRs). The scope further includes preparation of a comprehensive Urban Design Framework and Guidelines.

The Detailed Project Report (DPR) is expected to be completed within nine months.