Odisha Unveils ₹6,000 Crore Urban Renewal Scheme to Boost Infrastructure and Livelihoods

Bhubaneswar: Stepping up its efforts to modernise urban living and infrastructure, the Odisha government has rolled out a comprehensive urban development programme — Mukhya Mantri Sahari Bikash Yojana (MSBY) — with an outlay of ₹6,000 crore over the next five years. Approved by the State Cabinet on Friday, the scheme is designed to transform civic amenities across towns and cities in line with the state’s Viksit Odisha @ 2036 vision.

The initiative seeks to upgrade a wide range of urban infrastructure such as community halls, Kalyan Mandaps, crematoriums, market complexes, town halls, roads, drainage networks, vending zones, and parking facilities. It also includes the creation of EV charging stations and mini cold storage units to address emerging urban needs.

In an effort to foster economic activity at the grassroots, MSBY will promote the development of micro tourism projects and vibrant neighbourhood marketplaces. These initiatives are expected to energise local economies and create a multiplier effect for small businesses.

Employment generation is a key focus of the scheme. Through projects such as the construction of mini parks, walking tracks, open-air gyms, playgrounds, Bhogamandaps, and Bhagabat Tungis, the government aims to provide wage-based employment for more than five lakh skilled and unskilled workers. Additionally, rainwater harvesting structures and open space development projects will not only offer jobs but also contribute to sustainable urban growth.

Environmental conservation is another important pillar of the scheme. As many as 5,000 afforestation projects will be undertaken to green urban spaces, while existing water bodies and riverfronts will be rejuvenated to improve urban aesthetics and resilience to climate change.

The programme also includes provisions for animal welfare infrastructure, such as kanjiahudas, goshalas, and pet care centres — ensuring that development remains inclusive and holistic.

To ensure a strong start, the state government has allocated ₹1,100 crore in the 2025–26 fiscal year. Over time, MSBY is expected to roll out 50,000 urban infrastructure projects, significantly strengthening the state’s urban fabric and delivering long-term economic and social benefits.