Bhubaneswar: In a significant move to streamline procurement and eliminate delays in rural infrastructure projects, the Odisha government has issued a new Standard Operating Procedure (SOP) for the finalization of cement and steel rates for development works under the Panchayati Raj and Drinking Water Department.
The notification, dated July 6, 2026, was issued by Panchayati Raj and Drinking Water Department addressing to all Collector-cum-District Project Coordinators (DPCs) and Chief District Officers-cum-Executive Officers of Zilla Parishads.
As per the SOP, each district will form a committee chaired by the Collector. The committee will include the CDO-cum-EO as member-convener, along with the Additional Executive Officer (Technical) of the Zilla Parishad, a Superintending or Executive Engineer from the Roads and Buildings or Rural Development Department, two Block Development Officers (BDOs), and two Assistant Executive Engineers.
According to the official communication, District-Level Committees headed by Collectors will now be responsible for finalizing cement and steel rates. These rates will be reviewed and updated every three months on a quarterly basis to ensure they reflect current market conditions.
The initiative aims to address practical difficulties previously faced by districts in obtaining accurate and timely rates. Many projects executed through the Public Works Department (PWD) did not consistently maintain quarterly updates, leading to delays in finalization and updating of rates in departmental software.
The decision comes after the government observed delays in updating prices on SECURESoft and the Project Performance Monitoring System (PPMS) due to reliance on quarterly price data from the Works Department. These delays frequently impacted project estimates, procurement processes, and the overall execution of rural infrastructure projects.
Under the revised guidelines, district authorities will now collect quotations directly from cement manufacturers operating in Odisha. The final cement price will be determined based on the average factory price quoted by at least three companies.
For steel procurement, preference will be given to the prices quoted by the Steel Authority of India Limited (SAIL). In case SAIL products are unavailable, rates quoted by other companies approved by the Works Department may be considered.
Only steel conforming to Bureau of Indian Standards (BIS) specifications will be permitted for use in government projects. Independent quality testing will be conducted wherever necessary, and procurement must be restricted to reputed integrated steel manufacturers.
The notification made it clear that the approved prices, minutes of committee meetings, quotations received and calculation sheets must be uploaded on SECURESoft and PPMS and submitted to the department by the first day of April, July, October and January every year.
The new SOP seeks to establish a uniform, transparent, and time-bound mechanism across all districts. This is expected to reduce delays in project execution and bring greater efficiency, accountability, and fairness in tender processes for Panchayati Raj institutions and drinking water schemes throughout Odisha.
