Bhubaneswar: The Odisha government has taken a landmark step towards boosting industrial investment and economic growth by amending key provisions of the Odisha Town Planning and Improvement Trust (Planning and Building Standards) Rules, 2021, and the Odisha Development Authorities (Planning and Building Standards) Rules, 2020.
The reforms, notified by the Department of Housing and Urban Development through Notification No. 467 and Notification No. 468, mark a progressive shift towards enhancing the ease of doing business in the state. This transformative policy aims to eliminate regulatory bottlenecks and catalyze growth in the MSME and IT/ITeS sectors, reinforcing Odisha’s position as a preferred investment destination.
The amendments align with the Economic Survey 2024-25, which underscored the need for revising restrictive building norms to unlock economic opportunities. The survey emphasized that land lost per factory in Odisha due to outdated regulations was significantly higher than in other states, necessitating urgent reforms.
The key highlights of these reforms include greater economic freedom by removing rigid constraints on ground coverage, reducing parking and setbacks, and enhancing the base Floor Area Ratio (FAR) for industrial and IT establishments. Plotted and flatted factories can now utilize over 70% of land, leading to a twofold increase in factory units’ capacity, while businesses in the technology sector can construct more usable space on fewer floors, enabling greater scalability and efficiency.
The reforms drastically reduce land loss to building standards by 60%, empowering MSMEs with avenues for accelerated job creation and business expansion. These amendments reflect Odisha’s pro-business approach and reinforce its commitment to fostering an investor-friendly ecosystem. With these reforms, the state emerges as a leader in industrial land optimization, reducing compliance burdens while ensuring robust growth opportunities for entrepreneurs, startups, and global investors.
Krushna Chandra Mahapatra, Minister of Housing and Urban Development, stated: “Odisha’s building standards reforms are a game-changer. They unlock new opportunities for businesses, create more jobs, and drive sustainable economic development. This is a pivotal step in making Odisha the most attractive state for industrial investments.”
By championing these forward-looking reforms, Odisha is setting a new national benchmark for ease of business, ensuring its position as an economic powerhouse in the years to come.
