CM Majhi seeks central support in the Union Budget to enhance urbanization, tourism and infrastructure in Odisha

OdishaPlus Bureau

Chief Minister Mohan Majhi, has outlined his priorities for the Union Budget, which include the introduction of a new initiative aimed at promoting urbanization, a specialized package to enhance the tourism sector, and a dedicated central program under the ‘Purvodaya’ initiative to improve essential infrastructure in eastern states, particularly Odisha.

Poor Urbanization
During a pre-budget consultation meeting held in Jaisalmer, Rajasthan, on Friday, Majhi emphasized that the level of urbanization in Odisha falls significantly below the national average. He stated, “Cities serve as engines of growth, and the migration of substantial populations from rural areas to urban centers is unavoidable. This transition necessitates considerable capital investment, which will require support from the Union government.” He urged Finance Minister Nirmala Sitharaman to contemplate the introduction of a new scheme in the upcoming 2025-26 Budget.

Over 83% of the population resides in the villages of Odisha. Emphasizing the high expectations placed upon his administration, which assumed power over six months ago after a 24-year tenure of the BJD, he called for a focused approach towards health, education, and infrastructure development.

Majhi also advocated for the establishment of new industrial townships in Gopalpur (designated salt-pan land) and Jharsuguda to foster economic advancement in southern and western Odisha, respectively.

He reminded that Prime Minister Narendra Modi has indicated that Odisha is poised to become the growth engine of the nation in the forthcoming years and to realize this vision, he asserted that the state requires assistance from the Union government for several critical projects. “There must be an acceleration in the progress of large-scale infrastructure initiatives, including industrial parks, electricity grids, railway infrastructure—such as dedicated freight corridors, roads and expressways, as well as ports and airports,” he stated.

Sagaramala Project
He aimed to accelerate significant central initiatives such as the Sagarmala Project, the East Coast Economic Corridor, and National Waterway-5, which are poised to greatly enhance industrial development in Odisha. By advocating for a central program under the ‘Purvodaya’ initiative, he requested assistance in improving the capacity and technological capabilities of Paradip port, which includes the expansion of container handling facilities and expedited environmental clearances for industrial infrastructure projects.

The Chief Minister also requested financial backing for industrialization efforts in aspirational districts and the creation of a rare earth complex in Odisha. Regarding the Special Assistance to States for Capital Investment (SACI), Majhi noted that the allocation for the 2024-25 Union budget has increased to Rs 1.5 lakh crore, benefiting all states, including Odisha. However, he pointed out that the untied allocation under part I of SACI for 2024-25 represents only 37% of the total allocation, with the remaining 63% contingent upon sectoral reforms.

Tourism Development
To ensure predictable fund flow and improved capital expenditure utilization, at least 60% of the total allocation for SACI 2025-26 must be designated for untied part I, which offers greater spending flexibility.

Regarding tourism development, Majhi emphasized that the state requires an investment of approximately Rs 10,000 crore to establish world-class tourism infrastructure. He also advocated for a special financial package and requested the inclusion of 11 uncovered blocks in Mayurbhanj and Keonjhar under the ‘aspirational blocks’ initiative, noting that these districts are home to particularly vulnerable tribal groups (PVTGs) such as Juang, Lodha, Bihor, and Mankidia. Presently, 29 blocks in the state are included in this program.

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