The 45th meeting of the Odisha State Cabinet was held today under the chairmanship of Chief Minister Mohan Charan Majhi. The Cabinet discussed and approved a total of 11 proposals of six key departments,
1. FINANCE DEPARTMENT
Press Brief
The State Government proposes to amend the Odisha Goods and Services Tax (OGST) Act, 2017, aligning it with the Central Goods and Services Tax (CGST) Act, 2017, as amended by the Finance Act, 2026.
The proposed changes are based upon the recommendations made during the 56th GST Council Meeting, as follows:
To remove the tedious legal requirement of linking commercial post-sale discounts back to individual original invoices and agreements entered into at or before the supply of goods or services or both.
Taxpayers can now seamlessly issue credit notes in case of post-sale discounts, provided the recipient reverses the corresponding input tax credit.
At present, provisional refund (i.e., 90% of the value of the total amount claimed) is permissible without verification of supporting documents in case of zero-rated supply only. The proposed amendment would enable officers to grant provisional refunds for both zero-rated supplies and Inverted Duty Structure cases. In case of Inverted Duty Structure, the rate of tax on raw materials or inputs is higher than the rate of tax on finished products. This will address liquidity issues of the MSME sector where the inverted duty structure blocks working capital.
Additionally, the statutory ₹1,000 minimum threshold for processing tax refunds in case of exports has been proposed to be completely eliminated. Micro-exporters, startups, and cottage industries from Tier-2, Tier-3 and rural areas can now reclaim low-value tax refunds. This targeted removal of the refund floor directly enhances the global price competitiveness of low-value Indian goods.
The proposed mirror amendments will reduce costly administrative litigation while promoting the ease of doing business
Cabinet today approved the tender for the above work with an execution cost amounting to Rs.112,51,97,125.00 (Rupees One Hundred Twelve Crore Fifty One Lakh Ninety Seven Thousand One Hundred Twenty Five only) (excluding GST) and Operation & Maintenance (O&M) cost for five years amounting to Rs.5,63,72,376.00 (Rupees Five Crore Sixty Three Lakh Seventy Two Thousand Three Hundred Seventy Six only) (excluding GST). The project is targeted to be completed within twenty four (24) months.
After completion, this project will provide irrigation facilities to 5052.68 hectares of agricultural land in Nilgiri, Soro, Remuna and Balasore Sadar blocks of Balasore district. Apart from this, the project on completion will improve socio-economic condition of people of the localities
7. ST & SC DEVELOPMENT, MINORITIES AND BACKWARD CLASSES WELFARE DEPARTMENT
PRESS BRIEFING
Odisha Cabinet Approves MMJJM 2.0 to Enhance Livelihoods of 8 Lakh Tribal and PVTG Households
In a landmark decision aimed at accelerating socio-economic development in tribal areas, the Odisha Cabinet today approved the implementation of Mukhya Mantri Janajati Jeevika Mission (MMJJM) 2.0, the second phase of the State's flagship tribal livelihood programme.
Building upon the achievements of the first phase of MMJJM, which is currently being implemented across 13 districts covering 1.5 lakh tribal households, MMJJM 2.0 has been designed as a comprehensive livelihood enhancement programme for Tribal and Particularly Vulnerable Tribal Group (PVTG) communities across the State.
The programme will be implemented over a period of five years (2026-27 to 2030-31) with a total financial outlay of ₹2,995 crore, fully funded by the State Government. MMJJM 2.0 will cover 8 lakh tribal households, including all PVTG households, across 19 districts, 134 Tribal Sub-Plan (TSP) and Micro Project Area (MPA) blocks, 23 Integrated Tribal Development Agencies (ITDAs) and 20 Micro Project Areas (MPAs).
The primary objective of MMJJM 2.0 is to enhance the income and overall well-being of Tribal and PVTG households through the promotion of farm, off-farm and non-farm livelihood production clusters. The programme seeks to create sustainable livelihood opportunities by strengthening community institutions, promoting entrepreneurship, supporting value addition and marketing, and developing critical livelihood-support infrastructure.
A key feature of MMJJM 2.0 is its beneficiary-centric approach. Tribal households will have the flexibility to choose livelihood activities based on their interests, local opportunities and resource availability. Financial assistance of Rs 30,000 per household in two instalments will be transferred directly to beneficiaries through the Direct Benefit Transfer (DBT) mode, ensuring transparency, efficiency and timely support.
The programme will support a wide range of livelihood activities, including agriculture, horticulture, livestock rearing, fisheries, sericulture, forest-based livelihoods, Non-Timber Forest Produce (NTFP) value chains, traditional arts and crafts, handloom and handicrafts, and rural entrepreneurship. It will also facilitate the creation of irrigation facilities, post-harvest infrastructure, storage, processing and marketing systems to strengthen the livelihood ecosystem in tribal areas.
Recognising the unique needs of PVTG communities, MMJJM 2.0 includes dedicated interventions such as nutritional support for children, pregnant and lactating mothers; creches facility in PVTG habitations. Further, special Flexi Fund of Rs 500 Crore to address infrastructure needs of PVTG habitations through a bottom-up planning approach has been provisioned.
The programme is expected to significantly enhance household incomes, improve adoption of scientific farming practices, strengthen community institutions and contribute to sustainable and inclusive development in tribal regions of Odisha.
Consequent upon transfer of The Odisha State Legal Service Cadre from the Home Department to Law Department for smooth and efficient management of litigations in alignment with the objectives of the State Litigation Policy, the State Cabinet today approved the Odisha State Legal Service (OSLS) Cadre Rules, 2026.
The Odisha State Legal Service Cadre comprises Law Officers who provide legal assistance to various Departments of the State Government for smooth and efficient management of legal litigations.
Since the Law Department is the nodal Department responsible for implementation of the State Litigation Policy and coordination of Government litigation, administration of the OSLS Cadre under the Law Department is expected to strengthen litigation management, improve coordination among Departments and enhance the effectiveness of legal representation on behalf of the State.
The new Rules provide a comprehensive framework for cadre management, including recruitment, promotion, seniority and other service matters, while recognizing the Law Department as the Cadre Controlling Authority.
The decision is expected to strengthen institutional mechanisms for handling Government litigation and contribute to more effective implementation of the State Litigation Policy.
PRESS BRIEF
Approval of “PMAY-(U) BANDHU” to complement the PMAY-U 2.0 to provide universal coverage of housing to all eligible families in Urban areas by 2029.
The Government of Odisha has been implementing Pradhan Mantri Awas Yojana (Urban) [PMAY-U] and PMAY-U 2.0 across all 115 Urban Local Bodies (ULBs) since 2017. PMAY-U 2.0 will also be implemented in the newly declared 28 ULBs in the State. In addition, Odisha envisions “Odisha Housing for All” Policy to promote affordable housing in urban areas.
In line with the Odisha Vision Document (Viksit Odisha for Viksit Bharat), which targets increasing pucca house coverage from 59% in 2024 to 90% by 2029, the State aims to provide housing support to an additional 3.0–3.5 lakh urban households under PMAY-U 2.0 during 2025-2030. To expedite the implementation of PMAY-U) 2.0, few innovative interventions are felt necessary to adopt by the State. They are;
I. Financial Viability of Affordable Housing in Partnership (AHP) projects across the ULBs of Odisha, especially the smaller cities.
II. Financial incentives to the beneficiaries to contribute their share.
III. Facilitate EWS beneficiaries to avail housing loan at a reasonable rate
To address these gaps and accelerate universal housing coverage, the Government proposes the Pradhan Mantri Awas Yojana (Urban) Beneficiary Assistance for Nurturing Development of Housing Units (PMAY-(U) BANDHU). This is a complementary State scheme to support and top up the PMAY-U 2.0 scheme.
3. The Scheme has four components as follows:
i. Component-I will help in developing Affordable Housing in Partnership (AHP), Affordable Rental Housing (ARH) and Transit House (TH) Projects. A total of Rs 675 crore has been earmarked for this component during the 5 years.
ii. Component II will provide additional financial assistance to beneficiaries in the form of labour compensation and incentive. A total of Rs 685 crore has been earmarked for this component during the 5 years.
iii. Component III will facilitate housing loans to beneficiaries at an affordable rate and extend interest subvention support for deprived beneficiaries. During five years of the scheme, Rs 100 crore has been provided for this component.
iv. Component IV will provide financial assistance in special cases where beneficiaries get displaced due to special planning for cluster housing, slum – proofing or other such planning interventions. A total of Rs 125 crore has been budgeted for this component.
4. BANDHU – to be a true friend of PMAY-U beneficiaries
I. The scheme will act as enabler to provide Viability Gap Funding (VGF) support to implement Affordable Housing in Partnership (AHP), Affordable Rental House (ARH) and Transit House (TH) across the State, especially in smaller cities where viability was a challenge earlier. It is envisaged to support approximately 30,000 AHP units and 10,000 ARH/TH units in the next 5 years through this scheme.
II. These AHP projects will be developed with sustainable development concept having adequate open space, in built solar and rainwater harvesting. Further, social infrastructure like Anganwadi Centers, Children Play Area, Primary Health Centers, PDS distribution centers will be ensured for these projects. While allotting houses to needy beneficiaries, the scheme will priorities vulnerable, deprived and PwD citizens. Additional financial support will be provided to beneficiaries to compensate for their own labour contribution or sacrifice of their livelihood during construction. Also, there is provision to incentive beneficiary for early completion of houses. Several initiatives will be taken to facilitate housing loans to EWS beneficiaries at a reasonable rate of interest. Further, interest subvention support will be extended to highly deprived beneficiaries.
III. The PMAY – (U) BANDHU is approved with a plan amounting to Rs. 1615 crores which will be utilised for capital expenditure and revenue expenditure upto 2029.
11. Department of Agriculture & Farmers' Empowerment
PRESS BRIEF
Approval of the Scheme “Popularisation of Agricultural Implements, Equipment and Diesel Pump sets etc.”
The State Sector Scheme, "Popularisation of Agricultural Implements, Equipment and Diesel Pump Sets, etc." was implemented under the Department of Agriculture & Farmers’ Empowerment to promote farm mechanisation by facilitating access to modern agricultural machinery and equipment, thereby enhancing operational efficiency, improving agricultural productivity, reducing drudgery, and contributing to the modernisation and long-term sustainability of the agricultural sector.
Under the Scheme, the Government provides financial assistance in the form of subsidies to facilitate the adoption of modern agricultural implements and farm machinery by farmers across Odisha. A wide range of various categories of agricultural equipment, including tractors, rotavators, power tillers, combine harvesters, and other farm and post harvest machinery, is covered under the Scheme.
During the Scheme period from FY 2021–22 to FY 2025–26, a total of 2,54,774 farmers were benefited under the Scheme, reflecting its wide outreach and significant contribution to the promotion of farm mechanisation in the State.
In view of the continued need to strengthen agricultural mechanisation and sustain the gains achieved under the Scheme, the State Cabinet today has approved the extension of the Scheme for a further period of five years, from FY 2026–27 to FY 2030–31, with an estimated outlay of Rs 2,200.00 crore. During the extended period, the Scheme is expected to benefit 3,79,000 farmers across the State.
