Bhubaneswar: The Odisha government on Wednesday notified amendments to the Odisha Municipal Rules, 1953, to streamline administrative processes and enhance the financial powers of executive officers in urban local bodies.
The Housing and Urban Development Department issued the notification after considering objections and suggestions received on the draft published earlier in January under the provisions of the Odisha Municipal Act, 1950.
The amended rules, titled the Odisha Municipal (Amendment) Rules, 2025, will come into force from the date of publication in the Odisha Gazette.
Under the revised provisions, the Executive Officer can incur contingent expenditure up to Rs 10,000 per instance without inviting quotations, based on a recorded certification regarding quality and price. The officer can also approve expenditure up to Rs 3 lakh on the recommendation of a Local Purchase Committee comprising the Executive Officer, Accounts Officer of the Panchayat Samiti, a representative of the District Collector or Project Director of DUDA, and the municipal accountant.
The rules mandate that the committee must assess market rates, quality, and specifications before recommending purchases. Members must jointly certify that the goods meet required standards and are procured at reasonable prices from reliable suppliers. The Executive Officer must report such expenditure to the council in its next meeting, subject to the availability of funds in the municipal budget.
The amendment also revises payment procedures. Payment orders up to Rs 10 lakh will be signed by the Executive Officer alone. For amounts exceeding Rs 10 lakh, joint approval of the Executive Officer and the Chairperson, or the Vice-Chairperson in the absence of the Chairperson, will be required. Salary bills up to Rs 25 lakh can be sanctioned and signed by the Executive Officer, while higher amounts will require joint approval.
If a bill submitted to the chairperson is not approved or returned with reasons within seven days, the Executive Officer can get it countersigned by the District Magistrate.
The rules further empower Executive Officers to accord administrative sanction for works up to Rs 10 lakh, including emergent works. Projects exceeding this amount will require approval of the Chairperson.
The government stated that the amendments aim to remove administrative bottlenecks, ensure faster decision-making, and improve efficiency in municipal governance.
