Bhubaneswar: The Odisha government has introduced significant changes to the Odisha Municipal Rules, 1953, to make city administration faster and more efficient. By launching the new Odisha Municipal (Amendment) Rules, 2025, the state aims to reduce red tape and speed up local development projects. 
Odisha Boosts City Power: New 2025 Municipal Rules Speed Up Projects


The Housing and Urban Development Department issued notification number 9247 to outline these updates. These changes specifically redefine the financial powers of Executive Officers (EO) and Chairpersons within municipal bodies.

New Financial Powers for Executive Officers

Under the new rules, Executive Officers now have more independence to handle daily expenses. They can spend up to ₹10,000 for immediate administrative needs without seeking prior approval from the municipal council.
Additionally, if a local purchase committee gives a recommendation, the Executive Officer can authorize purchases worth up to ₹3 lakh. This change ensures that small, essential requirements for city offices do not face unnecessary delays.

Streamlining Salary and Bill Payments

The amendment also clarifies how staff salaries and vendor payments are handled.
  • Up to ₹25 lakh: The Executive Officer has the sole authority to sign and approve salary bills and payment orders.
  • Above ₹25 lakh: For larger amounts exceeding ₹25 lakh, both the Executive Officer and the Municipal Chairperson must sign the documents together.

Faster Project Approvals

To speed up infrastructure work, the government has revised the limits for administrative approvals:
  • Small Projects: The Executive Officer can now approve projects costing up to ₹10 lakh on their own.
  • Large Projects: Any project costing more than ₹10 lakh requires the official approval of the Chairperson.

Preventing Deadlocks

To ensure work does not stop due to administrative delays, a new 7-day rule has been implemented. If a bill or file is sent to the Chairperson, they must either sign it or return it with written objections within seven days. If the Chairperson does not take action within this week-long window, the Executive Officer can take the file to the District Collector for final approval.
These reforms are expected to remove many administrative hurdles. By decentralizing power and setting strict timelines, the Odisha government hopes to transform how municipalities serve the public and execute development work. 
Odisha Boosts City Power: New 2025 Municipal Rules Speed Up Projects


 
Odisha Boosts City Power: New 2025 Municipal Rules Speed Up Projects