Bhubaneswar New City project: Odisha govt identifies land to establish satellite city, expand state capital

The Odisha government has earmarked over 338 hectares on the outskirts of Bhubaneswar for developing a new satellite city, whose development will be facilitated by the recently sanctioned Rs 8,307 crore Capital Region Ring Road project.

On Tuesday, the Union Cabinet approved the 110.87-km six-lane Capital Region Ring Road (CRRR), to be built between Rameshwar and Tangi under the Hybrid Annuity Mode. The Rs 8,307.74 crore project aims to ease congestion on existing highways through Khordha, Bhubaneswar and Cuttack, and will form a critical link for the proposed New City.

Satellite City Blueprint

Chief Minister Mohan Charan Majhi said the new city, connected to the CRRR, will expand the capital region to include Cuttack, Bhubaneswar, Dhenkanal, Choudwar and Banki. The township is planned in Malipada, Daspur and Gothapatna, with housing capacity for two lakh residents and provision for solar-powered infrastructure, informed the CM, according to The Times of India.

The reports added that more than 95% of the land identified is already under government control, streamlining acquisition.

In January, the Bhubaneswar Development Authority signed a memorandum of understanding with a global real estate consultancy to prepare the master plan and recommend the project mix. Further, on Wednesday, housing and urban development officials met the consultancy’s South Asia and regional leadership to discuss urban infrastructure and managed services.

Funding Framework

The Bhubaneswar New City is estimated to cost Rs 8,200 crore. The state government plans to seek support under the Urban Challenge Fund, which has a central allocation of Rs 10,000 crore in the Union Budget 2025–26.

Odisha also intends to mobilise private investment and external lending from institutions such as the Asian Development Bank to finance the project.

The new capital city reports come at a time when the state remains poised for industrial growth. The Centre has already cleared two semiconductor units with an investment of Rs 4,009 crore while Posco-JSW has announced plans for a Rs 50,000 crore steel plant in Keonjhar. Together, these initiatives position the state for integrated urban and industrial development.