Rs 200 Crore Rural – Urban Transition Initiative to set New Benchmark in Planned Urbanisation: H&UD Dept
Bhubaneswar | February 25, 2026 – In a landmark move to redefine the state’s developmental landscape, the Government of Odisha has announced a dedicated allocation of ₹200 crore in the 2026–27 Budget for a pioneering Rural–Urban Transition initiative. This strategic intervention aims to guide Odisha’s burgeoning growth corridors toward structured, sustainable, and inclusive urbanization.
As economic momentum accelerates, several peri-urban areas and high-growth Gram Panchayats are organically evolving into urban clusters. To preempt the challenges of unplanned sprawl, the Housing & Urban Development (H&UD) Department has introduced a proactive framework to manage this shift scientifically.
A Proactive Blueprint for Modern Odisha.
Unlike traditional reclassification, this initiative focuses on “governance readiness”—equipping emerging regions with infrastructure and service delivery standards that meet urban aspirations before they are formally designated as towns.
Key Pillars of the Transition Framework are Systematic development of peri-urban belts to prevent haphazard expansion. Early provision of urban-level civic amenities (drainage, waste management, and street lighting). Regulated land use to ensure climate-resilient and balanced growth. Preparing local administrations for the shift from rural to urban governance modules.
Dr. Krushna Chandra Mahapatra, Hon’ble Minister, Housing & Urban Development told “Odisha stands at a decisive moment. Urbanization is inevitable, but unplanned urbanization is avoidable. With this ₹200 crore corpus, we are choosing foresight over reaction. We are building well-planned urban ecosystems today to reflect the aspirations of a progressive Odisha tomorrow.”
Smt. Usha Padhee, Additional Chief Secretary, H&UD “Our objective is to institutionalize a structured pathway for peri-urban areas to evolve into vibrant centers without disruption. By utilizing data-driven spatial planning and infrastructure benchmarking, we ensure that growth remains regulated, sustainable, and citizen-centric.”
The Road Ahead
The initiative will rely on inter-departmental convergence and technological integration to monitor settlement patterns in real-time. By bridging the rural-urban continuum, Odisha aims to reduce infrastructure stress on existing cities while ensuring that new growth centers are resilient and future-ready.
