Odisha eases building norms to promote MSMEs and IT sector growth

Bhubaneswar, Feb 24: The Odisha government has introduced significant amendments to urban planning and building regulations to promote industrial investment and economic expansion. Key modifications have been made to the Odisha Town Planning and Improvement Trust (Planning and Building Standards) Rules, 2021, and the Odisha Development Authorities (Planning and Building Standards) Rules, 2020.

These reforms, formally announced by the Department of Housing and Urban Development through Notification No. 467 and Notification No. 468, aim to streamline business regulations and encourage investment in the MSME and IT/ITeS sectors. The policy shift is designed to remove regulatory hurdles and position Odisha as a leading business-friendly state.

The changes align with the Economic Survey 2024-25, which highlighted the urgent need to update restrictive building norms. The survey pointed out that Odisha loses significantly more land per factory compared to other states due to outdated regulations, necessitating immediate reform.

Key amendments include greater land utilization flexibility, reduced parking and setback requirements, and an increase in base Floor Area Ratio (FAR) for industrial and IT establishments. With these changes, plotted and flatted factories can utilize over 70% of their land, potentially doubling factory capacity. Additionally, businesses in the IT sector can now construct more usable space on fewer floors, ensuring better scalability and efficiency.

These reforms are expected to cut land loss due to building regulations by 60%, creating new opportunities for MSMEs and facilitating job creation and business expansion. The policy demonstrates Odisha’s proactive approach to industrial development while reducing compliance burdens for investors.

Krushna Chandra Mahapatra, Minister of Housing and Urban Development, stated:
"These reforms are transformative. They will unlock new business opportunities, generate employment, and accelerate Odisha’s economic progress. This initiative reinforces our commitment to making Odisha the most attractive destination for industrial investment.”