Odisha Cabinet Enhances Financial Powers for Panchayat Samiti Projects
Move aims to fast-track bill approvals and speed up grassroots development
Bhubaneswar: The Odisha Cabinet approved a major reform in the Panchayati Raj and Drinking Water Department by enhancing the financial powers of officers for technical sanction and administrative approval of developmental works. The decision is aimed at expediting bill processing, ensuring timely approvals, and improving the pace of project execution at the Panchayat Samiti level.
As per the decision, Block Development Officers (BDOs) can now pass bills up to ₹10 lakh, a fivefold increase from the earlier ₹2 lakh limit, eliminating the need for countersignatures from Panchayat Samiti Chairmen. The authority to accord administrative approval for Panchayat Samiti projects has also been delegated to the CDO-cum-EO, Zilla Parishad, streamlining financial clearances.
The Cabinet observed that the scale of developmental works and fund flows has increased significantly, necessitating a revision of sanction limits. For general developmental schemes, Junior and Assistant Engineers can now approve works up to ₹5 lakh, Assistant Executive Engineers up to ₹20 lakh, Executive Engineers up to ₹1 crore, Superintending Engineers up to ₹4 crore, and Chief Engineers for projects beyond that. Similar provisions have been made for MGNREGA works.
Administrative approval limits have also been revised. For general schemes, BDOs can now approve projects up to ₹20 lakh, Panchayat Samiti Chairmen up to ₹50 lakh, and CDO-cum-EOs for projects above ₹50 lakh. In MGNREGA works, BDOs will approve projects up to ₹20 lakh, Chairmen up to ₹50 lakh, while Collectors will handle projects above ₹50 lakh.
Officials said the amendments will accelerate rural development while ensuring oversight by elected representatives, striking a balance between accountability and efficiency in governance.
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