Bhubaneswar Poised for Major Boost Through City Economic Regions Initiative
The state capital of Odisha, Bhubaneswar, is set to receive significant developmental benefits from the newly announced City Economic Regions (CER) initiative, which was unveiled in Sunday's Union Budget. This strategic move aims to transform urban landscapes across India, with a particular focus on enhancing infrastructure in emerging cities.
Substantial Financial Allocation for Urban Transformation
As part of this ambitious initiative, the government has committed to providing an allocation of Rs 5,000 crore to each City Economic Region over a period of 5 years. These funds will be distributed through a challenge mode, encouraging cities to present innovative and effective plans for urban development. The competitive element ensures that resources are directed toward the most promising and well-structured proposals.
Presenting the Budget, Union Finance Minister Nirmala Sitharaman emphasized that cities serve as India's engines of growth, innovation, and opportunity. She highlighted that the CER initiative would specifically target Tier II and Tier III cities, along with temple towns, which often lack modern infrastructure and adequate basic amenities. This targeted approach aims to bridge the urban development gap and promote balanced regional growth.
Bhubaneswar's Proven Track Record in Urban Development
Bhubaneswar has already demonstrated its capability and commitment to urban improvement through its successful participation in the Smart City Mission. Implemented between 2016 and 2025, this earlier initiative saw Bhubaneswar topping the first list of smart cities and receiving an allocation of Rs 2,072 crore during the scheme's implementation period.
The city underwent remarkable transformations during this phase, with the execution of numerous impactful projects. Key developments included:
- The implementation of a smart traffic signalling system to improve road efficiency
- The creation of Smart Janpath, enhancing pedestrian and vehicular movement
- Establishment of a multi-level car parking system to address congestion
- Launch of Socially Smart Bhubaneswar initiatives focusing on community welfare
- Development of smart parks and green spaces for recreational use
- Execution of a street vendor improvement programme to support local livelihoods
Accelerating Ongoing and Future Development Projects
With the introduction of the new CER initiative, Bhubaneswar and its surrounding regions are expected to accelerate their ongoing development efforts. Urban planning experts believe this initiative will play a crucial role in advancing several key regional projects.
According to development specialists, the CER framework will significantly contribute to the realization of the proposed Bhubaneswar Tri City concept and the ambitious Bhubaneswar-Cuttack-Puri-Paradip Economic Region (BCPPER). These projects aim to create integrated economic zones that foster sustainable growth and improve connectivity across the region.
Industry Experts Welcome Budget Announcements
Rajat Bokolia, a prominent real estate developer, expressed enthusiasm about the Budget's implications for the real estate sector, particularly in Tier II cities. He stated, The announcement of Rs 5,000 crore per City Economic Region over 5 years to upgrade urban infrastructure in these growing hubs will add to the momentum. Bokolia believes this investment will stimulate construction activity and enhance property values in developing urban centers.
Swapan Mukherjee, chief financial officer of a real estate firm, praised the Budget for presenting a robust vision for India's long-term economic growth. He remarked, Focus on unlocking opportunities beyond major metros, particularly in eastern states like Odisha, is a welcome move that will catalyse business growth across sectors. Mukherjee emphasized that this regional focus would create new economic opportunities and attract investments to previously underserved areas.
The City Economic Regions initiative represents a strategic shift toward decentralized urban development, recognizing the potential of smaller cities to contribute significantly to national economic progress. For Bhubaneswar, this means not only continued infrastructure improvements but also enhanced economic prospects and quality of life for its residents.
