New Building Norms to Unlock Growth for MSMEs, IT/ITeS, and Commercial Enterprises
Bhubaneswar, 12th March 2025: The Department of Housing and Urban Development, Government of Odisha, has introduced significant amendments 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 reforms aim to enhance economic freedom, particularly benefiting MSMEs, IT/ITeS enterprises, and industrial development in the state. The changes align with Odisha’s focus on systematic deregulation to facilitate ease of doing business.
Bhubaneswar, 12th March 2025: The Department of Housing and Urban Development, Government of Odisha, has introduced significant amendments 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 reforms aim to enhance economic freedom, particularly benefiting MSMEs, IT/ITeS enterprises, and industrial development in the state. The changes align with Odisha’s focus on systematic deregulation to facilitate ease of doing business.
The amendments introduce notable relaxations, such as the removal of ground coverage limits, reduced parking and setback requirements, and increased base Floor Area Ratio (FAR) for factories and IT/ITeS establishments. These changes allow plotted and flatted factories to utilize over 70% of land space, enabling flatted factories to accommodate twice the number of units. Additionally, IT/ITeS enterprises can now expand within fewer floors, enhancing land utilization and operational efficiency.
To attract large-scale commercial growth, the base FAR for developments along roads measuring 18 meters (60 feet) or wider has been increased. This strategic move aims to promote larger commercial establishments and create new business opportunities. For industrial buildings, restrictions on ground coverage and requirements for purchasable FAR or TDR have been eliminated. Furthermore, parking requirements have been significantly reduced from 30% to just 8%, allowing for larger industrial setups.
Chief Secretary of Odisha, Manoj Ahuja, emphasized that these reforms reflect Odisha’s transition from a regulatory to a facilitative approach, encouraging innovation and technological adoption. Principal Secretary of Housing and Urban Development, Usha Padhee, highlighted that the amendments incorporate global best practices tailored to Odisha’s needs, ensuring reduced bureaucratic hurdles and improved business prospects.
MSMEs stand to benefit significantly from the reforms, with land lost to building standards reduced by 60%. This opens greater avenues for job creation, entrepreneurial growth, and global investment. With these strategic reforms, Odisha is reinforcing its position as a business-friendly state, committed to driving economic expansion and transforming itself into a hub for industrial growth and investment under the vision of ‘Bikasita Odisha’.
