Odisha amends statewide building norms to facilitate ease of doing business

The Odisha government has made significant changes 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 amendments aim to boost industrial investment and economic growth by simplifying regulations.

Reforms to Enhance Business

The Department of Housing and Urban Development issued Notification No. 467 and 468, emphasizing the need to remove regulatory bottlenecks. These reforms align with the Economic Survey 2024-25, which highlighted the necessity of updating building norms to unlock economic opportunities.

Key Changes

The amendments provide greater economic freedom by removing constraints on ground coverage, reducing parking and setback requirements, and increasing the base Floor Area Ratio (FAR). Factories can now use over 70% of their land, doubling their capacity, while IT businesses can build more usable space on fewer floors.

Businesses in the technology sector can construct more usable space with fewer floors, improving scalability and efficiency. Additionally, the reforms reduce land loss to building standards by 60%, enabling MSMEs to expand and create more jobs.

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For industrial buildings up to 15 meters in height, setbacks have been standardized, while taller buildings will require proportional increases. Commercial structures along roads 18 meters or wider now benefit from a base FAR of 5.00. Furthermore, industrial buildings are now allowed additional FAR without requiring Transferable Development Rights (TDR) certificates, the notification read.

Impact on MSMEs

These reforms are expected to reduce land loss by 60%, offering MSMEs more opportunities for job creation and business growth. The state aims to become a leader in industrial land optimization, attracting entrepreneurs, startups, and global investors.

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The amendments align with the Economic Survey 2024-25, which emphasized the need for revising restrictive building norms. The survey highlighted that Odisha faced significantly higher land loss per factory due to outdated regulations, necessitating urgent reforms.