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More Power For EO

Bhubaneswar: In a move to overhaul urban governance and reduce bureaucratic delays, the Odisha government has implemented key amendments to the Odisha Municipal Rules, 1953. The newly introduced Odisha Municipal (Amendment) Rules, 2025, focus on restructuring the financial and administrative powers of Executive Officers and Chairpersons across the state’s urban local bodies.

According to the notification issued by the Housing and Urban Development Department, the Executive Officer of a municipality is now empowered to spend up to 10 lakh rupees for administrative contingencies without requiring prior council approval. This shift is expected to allow for faster handling of immediate operational needs within city administrations.

The financial delegation also clarifies the process for salary disbursements and payment orders. Executive Officers can now independently sign and authorize bills up to a limit of 25 lakh rupees. For any amount exceeding this threshold, a joint approval from both the Executive Officer and the Chairperson becomes mandatory.

Furthermore, the amendment streamlines project approvals. While the Executive Officer holds the authority to grant administrative sanction for works costing up to 10 lakh rupees, projects valued higher than this will require the Chairperson’s signature. To prevent administrative gridlock, a new time-bound clause has been introduced: if a bill presented to the Chairperson is not signed or returned with specific reasons within seven days, the Executive Officer is authorized to seek approval directly from the District Magistrate.

These updates are designed to ensure that developmental projects and daily urban services are not stalled by procedural bottlenecks, fostering a more efficient and responsive local government system.