Odisha enhances financial powers of urban local bodies to speed up civic project execution

The revised framework raises spending and project approval limits for municipal bodies and smart cities, granting greater autonomy for faster implementation of infrastructure works.
Office of the Bhubaneswar Municipal Corporation (BMC).
Office of the Bhubaneswar Municipal Corporation (BMC).(File Photo | Debadatta Mallick, EPS)
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BHUBANESWAR: The state government on Thursday revised the delegation of financial powers for urban local bodies (ULBs) along with Bhubaneswar and Rourkela smart cities for greater autonomy and timely implementation of civic infrastructure projects.

The financial powers of the managing directors of Bhubaneswar Smart City Limited (BSCL) and Rourkela Smart City Limited (RSCL) have been brought at par with those of commissioners of municipal corporations.

According to a statement issued by the Housing and Urban Development department, the financial limit of commissioners for payment of works bills, purchase bills and office contingent bills has been enhanced to Rs 1 crore. This will be the same for the MDs of the BSCL and RSCL. Earlier, the limit was Rs 50 lakh for BMC commissioner and Rs 15 lakh for commissioners of other municipal corporations.

The financial limit for granting administrative approval to works and projects by the commissioners has been increased from Rs 2 crore to Rs 3 crore, the department said.

Projects above Rs 3 crore and up to Rs 4 crore will be approved by the Standing Committee on Contracts while those above Rs 4 crore and up to Rs 5 crore will be okayed by the municipal corporation council. Proposals exceeding Rs 5 crore will continue to require approval of the administrative department, it added.

For municipalities and notified area councils (NACs), the payment authority of executive officers has been enhanced from Rs 10 lakh to Rs 20 lakh. Bills exceeding Rs 20 lakh will require the joint signatures of the executive officer and the chairman. Executive officers have also been granted full powers for payment of salary and pension bills.

As per the department, the financial limit for administrative approval of works and projects has been increased from Rs 10 lakh to Rs 20 lakh. Projects above Rs 20 lakh and up to Rs 3 crore will be approved by the municipal councils or NACs, while those exceeding Rs 3 crore will require approval of the administrative department.

The revised framework will come into force with immediate effect, superseding all previous orders, notifications and memoranda on the subject, said the department.

Enhanced numbers

  • Financial limit of municipal corporation commissioners and BSCL, RSCL MDs has been increased to Rs 1 crore Projects above

  • Rs 3 crore and up to Rs 4 crore will be approved by the Standing Committee on Contracts

  • Those between Rs 4 cr and Rs 5 cr will be okayed by the municipal corporation (council)

  • Proposals exceeding Rs 5 cr will continue to require approval of the administrative department

  • For municipalities and NACs, the payment authority of executive officers has been enhanced from Rs 10L to Rs 20L

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