Odisha Raises Bill Approval Powers of Municipal Bodies, Smart City Projects

20 Aug 2026, 09:56 by Vinay Kakkad · KalingaTV

The Odisha government has widened the financial authority available to key urban local bodies, allowing municipal officials to approve larger payments and giving Smart City project heads unrestricted powers to clear bills.

The revised system takes effect immediately and covers seven municipal corporations, municipalities and Notified Area Councils (NACs), with the stated objective of reducing administrative bottlenecks in urban project execution.

Under the new limits, Municipal Commissioners can sanction payments of up to Rs 1 crore. Executive Officers of the concerned urban local bodies can clear bills valued at up to Rs 20 lakh.

Bills that go beyond the prescribed authority of these officials will be dealt with by the respective Chairpersons. Mayors, meanwhile, have been authorised to approve bills exceeding Rs 1 crore.

The changes also extend to the financial administration of Smart City projects, where the government has taken a more expansive approach. Managing Directors of Smart City projects have been given full authority to clear bills across all categories, with no upper financial ceiling.

That provision is intended to allow financial decisions on ongoing urban initiatives to be taken without having to move through additional layers of approval for higher-value bills.

Officials said the revised powers are aimed at making administrative procedures more efficient, cutting delays in bill processing and facilitating smoother implementation of projects as Odisha’s urban centres continue to grow.

The changes effectively place greater financial decision-making responsibility with officials and elected representatives at the urban-local-body level, while giving Smart City Managing Directors independent authority over bill clearance.