Bhubaneswar: The Odisha government has revised the delegation of financial powers for Urban Local Bodies (ULBs), and Smart Cities Ltd to speed up urban development, improve governance and reduce delays in decision-making.
The Housing & Urban Development Department has notified the revised framework, which comes into force with immediate effect.
The new framework supersedes all previous orders, notifications and memoranda on the subject. It also brings the financial powers of the Managing Directors of Bhubaneswar Smart City Limited and Rourkela Smart City Limited at par with those of Commissioners of Municipal Corporations.
For Municipal Corporations, the payment limit of Commissioners for works bills, purchase bills and office contingent bills has been increased to Rs 1 crore. Earlier, the limit was Rs 50 lakh in Bhubaneswar Municipal Corporation and Rs 15 lakh in other Municipal Corporations. Bills exceeding Rs 1 crore will be placed before the Municipal Corporation for approval.
Commissioners have also been delegated full powers for the payment of salary and pension bills. The financial limit for granting administrative approval to works and projects has been increased from Rs 2 crore to Rs 3 crore.
Projects above Rs 3 crore and up to Rs 4 crore will be approved by the Standing Committee on Contracts. Projects above Rs 4 crore and up to Rs 5 crore will require approval of the Municipal Corporation. Proposals exceeding Rs 5 crore will continue to require approval of the Administrative Department.
For Municipalities and Notified Area Councils, 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 the payment of salary and pension bills. 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 Council or NAC Council. Proposals exceeding Rs 3 crore will continue to require approval of the Administrative Department.
The revised delegation of financial powers is expected to strengthen local governance by giving urban local institutions greater financial autonomy. It is also expected to reduce procedural delays and facilitate the timely execution of civic infrastructure and public welfare projects across Odisha.
