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Odisha News, Odisha Breaking News, Odisha Latest News || Ommcom News
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Odisha Cabinet Enhances Financial Sanction Powers To Speed Up Panchayat-Level Projects

OMMCOM NEWS by OMMCOM NEWS
September 10, 2025
in Odisha
lok seva bhavan

Bhubaneswar: The Odisha Cabinet on Wednesday approved a proposal of the Panchayati Raj and Drinking Water Department to enhance the financial powers of officers for both technical sanction and administrative approval of developmental works. The move aims to expedite bill processing, ensure timely approvals, and facilitate the smooth execution of projects across Panchayat Samitis.

As part of the decision, the financial power of Block Development Officers to pass bills of Panchayat Samiti works has been increased from ₹2 lakh to ₹10 lakh, doing away with the need for countersignature by the Panchayat Samiti Chairman. To further streamline procedures, the authority to accord administrative approval of plans and estimates for Panchayat Samiti projects has been delegated to the CDO-cum-EO, Zilla Parishad, ensuring faster financial approvals.

The Cabinet noted that the volume of developmental works and the flow of funds at the Panchayat Samiti level have grown substantially, requiring a revision of sanction limits. For general developmental schemes other than MGNREGA, Junior and Assistant Engineers can now accord technical sanction up to ₹5 lakh, Assistant Executive Engineers up to ₹20 lakh, Executive Engineers up to ₹1 crore, Superintending Engineers up to ₹4 crore, and the Chief Engineer for projects above ₹4 crore. A similar pattern has been introduced for MGNREGA works, with sanctioning powers distributed among engineers at various levels.

Administrative approval limits have also been revised. For general schemes, Block Development Officers can now approve projects up to ₹20 lakh, Panchayat Samiti Chairmen up to ₹50 lakh, and CDO-cum-EOs of Zilla Parishads for projects above ₹50 lakh. In the case of MGNREGA, Block Development Officers will exercise powers up to ₹20 lakh, Panchayat Samiti Chairmen up to ₹50 lakh, and Collectors for projects above ₹50 lakh.

According to officials, these amendments will strengthen the pace of development at the grassroots level while retaining the supervisory role of elected representatives, thereby striking a balance between accountability and efficiency in governance.

Tags: Financial Sanction PowersOdisha CabinetPanchayat-Level Projects
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