Odisha Sets Aside ₹1,615 Crore for Affordable Housing Initiative Under BANDHU

Bhubaneswar: Odisha has earmarked ₹1,615 crore over five years under its PMAY-Urban BANDHU initiative to expand affordable housing options, with a focus on economically weaker households, landless families, construction workers and migrant populations.

The state’s integrated housing strategy, combining financial assistance, policy reforms, private sector participation and rental accommodation, was showcased at a session on “Affordable Housing – Demand & Supply Dynamics” during the 2nd National Urban Conclave 2026 in Bhubaneswar.

Presenting Odisha’s initiatives at the session, Usha Padhee, Additional Chief Secretary of the Housing and Urban Development Department, highlighted the need to address both the demand for affordable homes and the constraints affecting their supply. She outlined measures to make housing more accessible through beneficiary assistance, development incentives and alternative housing models suited to different income groups.

The BANDHU initiative—Beneficiary Assistance for Nurturing Development of Housing Units—is designed to strengthen affordable housing through viability support for projects, assistance and incentives for construction workers, and proposed housing credit support for eligible households. It also seeks to address the needs of families inadequately covered by existing housing provisions and promote affordable, rental and transit accommodation.

Over 1.4 lakh houses completed under beneficiary-led construction

Odisha has adopted multiple housing models to meet the varied needs of urban residents. These include beneficiary-led construction, dedicated affordable housing projects, in-situ slum redevelopment, relocation, mandatory housing provisions in developer projects and rental accommodation.

Under beneficiary-led construction, approximately 1.4 lakh houses have been completed and occupied across urban Odisha. Affordable housing projects and in-situ redevelopment initiatives have also helped families gain access to secure homes in major cities.

To expand options for people who may not be in a position to purchase homes, rental housing retrofitting projects are being supported under BANDHU in Rourkela, Dhenkanal, Paradip and Jharsuguda. These are intended to provide additional accommodation for migrant workers and other people who move between urban centres for employment and other opportunities.

Policy reforms to lower housing costs

The state has introduced policy measures intended to reduce the cost of housing and encourage developers to invest in affordable housing. These include substantial reductions in stamp duty and registration charges for eligible homes, mandatory provisions for Economically Weaker Section (EWS) and Low-Income Group (LIG) housing, and development incentives through additional Floor Area Ratio (FAR) and Transferable Development Rights (TDR).

Reforms relating to rental housing have also been outlined, along with provisions to reserve land for affordable housing in Master Plans and Development Plans. These measures seek to increase the availability of suitable land and encourage greater participation by private developers in meeting urban housing requirements.

Proposed land bank to support housing development

Another key initiative presented at the session was the proposed BHUMI framework, or Bank of Land for Housing & Urban Masterplan and Infrastructure.

The framework envisages a dedicated land bank supported by a geographic information system (GIS)-based land inventory, a nodal mechanism for land allocation and dedicated financial arrangements for housing and urban infrastructure development. The draft policy is under process and is proposed to be placed before the Cabinet for approval.

The proposed framework is intended to improve the identification and availability of land for planned housing development while supporting the wider infrastructure required for growing urban areas.

National-level discussion on housing demand and supply

The session was moderated by Kumar Ravikant Singh, Joint Secretary, Ministry of Housing and Urban Affairs, Government of India. Other panellists included Mohammed Shayin, Commissioner and Secretary, Housing for All Department, Government of Haryana; N.K. Patel, Chairman, NAREDCO Gujarat; Pankaj Motwani, Managing Director, Motwani Constructions; Soumendu Chatterjee, Senior Executive Director, ANAROCK Property Consultant; and Kiran Avadhanula, Senior Urban Sector Specialist and Lead, Sustainable Urban Development, KfW Development Bank.

The discussions centred on the challenges of balancing housing demand and supply, the role of government policies in making homes more affordable, and the importance of public-private collaboration in expanding housing options.

Odisha’s approach emphasises combining direct beneficiary support with policy incentives, planned land availability and diverse housing models. Through these measures, the state aims to widen access to safe and affordable homes and promote more inclusive urban development.