“The Department of Housing and Urban Development, Government of Odisha, notified key amendments to Odisha Town Planning and Improvement Trust (Planning and Building Standards) Rules, 2021 (Notification No. 467, dated 21.02.2025) and Odisha Development Authorities (Planning and Building Standards) Rules, 2020 (Notification No. 468, dated 21.02.2025),” an official statement issued on Wednesday said.

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These amendments bring key relief for standalone and flatted factories, specifically the MSME sector and IT/ITeS enterprises in the state.

The notified amendments increase economic freedom and ease of doing business in Odisha. The amendments remove the requirement of ground coverage, reduce parking and setbacks, and increase the base Floor Area Ratio (FAR) for factories and IT/ITes.

As a result, plotted and flatted factories can achieve a footprint of over 70%, flatted factories can accommodate twice the number of units as before, and IT/ITeS enterprises can build more in a lesser number of floors, an official said.

To attract large-scale commercial development along wider roads, incentives have been provided in the form of relaxation in Floor Area Ratio (FAR). Specifically, the base FAR for commercial developments on roads with a width of 18 metres (60 feet) or more has been increased to promote large-scale commercial growth.

For all industrial buildings, restrictions on ground coverage and the requirement for purchasable FAR or TDR have been completely removed. Parking requirements for industrial buildings have been reduced to 8% from 30% to allow more industrial areas to be constructed.

“Deregulation is an idea whose time has come. These regulatory reforms will promote ease of doing business, foster innovation, help embrace new technologies, and become a source of competitive advantage for Odisha,” Chief Secretary Manoj Ahuja said.

He added that the state is focusing on bringing in a fundamental change in the relationship between the regulator and the regulated, with the state shifting from the role of regulator to being a facilitator.

MSMEs are key beneficiaries of these reforms. The land lost to building standards has been reduced by 60% for MSMEs, creating greater opportunities for generating jobs and increasing growth. With these reforms, Odisha has emerged as a leader in industrial land optimisation, reducing compliance burdens while ensuring robust growth opportunities for entrepreneurs, startups, and global investors, concluded the official statement.