Bhubaneswar, Dec 20 (FN Representative) Odisha Chief Minister Mohan Charan Majhi on Friday urged the Centre to allocate at least 60 percent of the total funds under the Special Assistance to States for Capital Investment (SACI) 2025-26 to the state. Speaking at the consultation meeting with the Union Finance Minister Nirmala Sitharaman in Jaisalmer, Majhi emphasized the need for predictable fund flow and enhanced utilization for capital expenditure (CAPEX). He requested that at least 60 percent of the total SACI allocation for 2025-26 be designated under the untied Part-I category, with the remaining funds allocated for sectoral reforms.
The CM expressed his gratitude to the Union Finance Minister for providing a platform for states to present their suggestions and priorities for the upcoming Union Budget. He highlighted that the SACI allocation in the Union Budget 2024-25 was enhanced to Rs.1.50 lakh crore, benefiting all states, including Odisha. However, Majhi pointed out that only 37 percent of the SACI 2024-25 allocation was untied under Part-I, while 63 percent was linked to sectoral reforms. He reiterated his request to allocate at least 60 percent of SACI funds as untied. The Chief Minister also noted that Odisha’s urbanization rate is significantly lower than the national average. Citing cities as engines of growth, he stressed the need for substantial capital investment to accommodate the inevitable migration of rural populations to urban areas.
He urged the Union Government to consider launching a new scheme to support the urbanization of states like Odisha, which have lower urbanization levels. Majhi proposed the establishment of new industrial townships at Gopalpur (Salt Pan Land) and Jharsuguda to boost economic growth in southern and western Odisha. He reminded the gathering of Prime Minister Narendra Modi’s vision of Odisha as a growth engine for the country in the coming years. To fulfill this vision, Majhi sought Union Government support for critical projects such as industrial parks and corridors, electricity grids, railway infrastructure (including dedicated freight corridors), roads and expressways, ports, and airports. The CM highlighted major central projects, including the Sagarmala Project, the East Coast Economic Corridor, and National Waterway-5, which he said would significantly enhance Odisha’s industrial development. He suggested introducing a dedicated central scheme under the ‘Purvodaya’ initiative to support critical infrastructure development in eastern states, including Odisha. Majhi also called for financial support for industrialization in aspirational districts, the establishment of a Rare Earths Complex in Odisha, capacity enhancement and technological upgrades for Paradip Port, expansion of container handling infrastructure, and expedited environmental clearances for industrial projects.
The Chief Minister emphasized the need for a Rs.10,000 crore investment to develop world-class tourism infrastructure in Odisha and requested a special package for tourism development in the FY 2025-26 budget. He expressed concern over the inadequate release of central assistance under the Jal Jeevan Mission (JJM) this financial year, noting that the available funds had already been exhausted. Majhi urged the Union Finance Minister to ensure adequate budgetary provisions and timely fund releases to complete targeted projects before the upcoming summer. The CM underscored the high expectations of Odisha’s people following the new government’s assumption of power six months ago after 24 years of regional party rule. He stated that the public is eager to see transformation in healthcare, education, and infrastructure. He also requested the inclusion of uncovered blocks in Mayurbhanj and Keonjhar districts under the Aspirational Blocks Programme. These districts are home to Particularly Vulnerable Tribal Groups (PVTGs) such as the Juang, Lodha, Bihor, and Mankidia communities, he said and specifically urged the inclusion of 11 uncovered blocks in these districts, in addition to the 29 blocks approved earlier.