Bhubaneswar: Marking a decisive shift in Odisha’s urban growth strategy, Chief Minister Mohan Charan Majhi on Friday announced the launch of a new “Chief Minister Smart City Mission” with an allocation of ₹100 crore for 2026-27, positioning it as a catalyst for comprehensive development of major cities.
The initiative, unveiled while tabling the annual Budget for 2026-27 in the Odisha Legislative Assembly, seeks to drive convergence of urban infrastructure schemes and ensure provision of essential civic facilities to make cities more liveable and future-ready.
The Smart City Mission announcement came alongside a broader commitment of ₹10,738 crore for Urban Development schemes and projects, reflecting a 7.25 per cent increase over the previous year’s allocation. The Chief Minister said Odisha is entering a decisive phase of urban transformation, with renewed emphasis on strengthening infrastructure, improving quality of life and building sustainable cities.
Under the newly proposed Liveable Cities Mission and Eight Model Industrial Cities Programme, covering more than 50 cities, the government plans to expand affordable housing, ensure 24×7 water supply, strengthen solid waste management systems, improve public transport, promote walkable streets and develop green and open spaces. These interventions will be implemented through saturation of existing State and Central schemes to maximise impact.
To bridge critical infrastructure gaps, ₹1,161 crore has been earmarked under the Mukhyamantri Sahari Bikash Yojana. Recognising the growing challenge of climate change, the Budget proposes ₹620 crore for storm-water drainage and sewerage projects, including major works in Rourkela, aimed at building climate-resilient urban systems. Urban mobility has also been prioritised, with ₹373 crore allocated for Urban Transport Infrastructure, supplemented by support under the PM-e-Bus Sewa initiative in major cities.
The government has also proposed ₹320 crore under the Samruddha Sahara scheme to support comprehensive town planning, new city development and growth hub initiatives. This programme will focus on area surveys, road infrastructure and essential utilities such as sewerage and electrification, particularly in the Bhubaneswar-Cuttack-Puri-Paradeep Economic Region and key urban clusters like Sambalpur and Berhampur. To ensure asset sustainability and generate livelihoods, ₹200 crore has been provided for Urban Wage Employment aimed at maintenance of parks and gyms under Mukhyamantri Sahari Bikash Yojana.
Water security and sanitation remain central to the urban agenda. A combined investment of ₹1,767 crore has been proposed under SUJALA and AMRUT 2.0 schemes to ensure universal access to safe drinking water. In addition, ₹710 crore has been allocated to sanitation initiatives, including ₹280 crore under Swachha Odisha and ₹430 crore under Swachh Bharat Mission, to accelerate bioremediation of legacy waste, operationalise waste-to-energy plants and modernise solid waste management infrastructure.
Affordable housing continues to be a cornerstone of the state’s development vision. The government is implementing Pradhan Mantri Awas Yojana – Urban 2.0 while introducing a complementary state initiative titled PMAY-Urban BANDHU to support Economically Weaker Section beneficiaries and bridge funding gaps. The state also plans to earmark around 50 acres of land annually for development of affordable housing projects under the Affordable Housing in Partnership vertical of PMAY-U 2.0, with a focus on eligible landless beneficiaries.
With the launch of the Chief Minister Smart City Mission at the forefront, the Budget outlines an ambitious roadmap aimed at reshaping Odisha’s urban centres into resilient, inclusive and growth-oriented cities aligned with the larger vision of “Viksit Odisha for Viksit Bharat.”
