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 Rs 1 crore. Previously, the limit was Rs 50 lakh in Bhubaneswar Municipal Corporation and Rs 15 lakh in other corporations. Bills exceeding Rs 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 Rs 2 crore to Rs 3 crore.
Under the revised approval mechanism, projects costing more than Rs 3 crore and up to Rs 4 crore will be approved by the Standing Committee on Contracts. Projects above Rs 4 crore and up to Rs 5 crore will require approval of the municipal corporation, while proposals exceeding Rs 5 crore will continue to need clearance from the administrative department.
For municipalities and NACs, the payment authority of Executive Officers (EOs) has been doubled from Rs 10 lakh to Rs 20 lakh. Bills above Rs 20 lakh will require the joint signatures of the EO and the Chairperson. EOs 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 Rs 10 lakh to Rs 20 lakh.
Projects costing above Rs 20 lakh and up to Rs 3 crore will now be approved by the municipal council or NAC council. Any proposal exceeding Rs 3 crore will continue to require approval from the administrative department.
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