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Odisha CM launches ambitious economic regional plan BCPPER

February 07, 2026 3 min read Economics Polity & Governance GS Paper II (Governance) GS Paper III (Indian Economy Planning)
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What Happened

  • Odisha Chief Minister Mohan Charan Majhi launched the economic development plan for the Bhubaneswar-Cuttack-Puri-Paradip Economic Region (BCPPER), targeting growth from $22.4 billion to $500 billion by 2047.
  • The BCPPER region currently represents 19% of Odisha's total economy and has been designated as the fifth City Economic Region (CER) under the Union Budget 2026-27 framework, following Mumbai, Surat, Visakhapatnam, and Varanasi.
  • The plan includes more than 80 projects across sectors such as metal downstream industries, biotechnology, textiles, chemicals, tourism, education, and IT, along with over 30 policy initiatives.
  • Key proposals include an SEZ for education, an innovation city, and a logistics hub to transform the region into a centre for investment and prosperity.
  • Under the CER framework, each region will receive central assistance of Rs 5,000 crore over five years through a challenge-based, reform-cum-results financing mechanism.

Static Topic Bridges

City Economic Regions (CER) Framework

The Union Budget 2026-27 introduced the City Economic Regions concept as a new urban development paradigm, shifting from the earlier Smart Cities Mission approach. CERs treat urban agglomerations as integrated economic systems rather than administrative units, focusing on connectivity, logistics, industrial linkages, and regional planning.

  • The Centre plans to develop 20 CERs across the country, each receiving Rs 5,000 crore over five years.
  • Financing is through a challenge mode with reform-cum-results based criteria, incentivizing governance reforms.
  • NITI Aayog has prepared economic plans for five CERs so far: Mumbai, Surat, Visakhapatnam, Varanasi, and now BCPPER.
  • The CER approach builds on lessons from the Smart Cities Mission (2015-2023), which focused primarily on digital infrastructure within city boundaries.

Connection to this news: BCPPER is the fifth CER plan launched and the first in eastern India, reflecting the Centre's intent to create economic growth engines beyond established metro cities and reduce regional disparity.

Special Economic Zones (SEZs) in India

India's SEZ policy evolved from the Export Processing Zone model, with Asia's first EPZ established at Kandla in 1965. The SEZ Act 2005 formalized the framework, and as of 2023-24, 276 SEZs are operational in India with exports worth $163.69 billion. The SEZ Amendment Bill 2024 seeks to create more flexible "Development Hubs."

  • The SEZ Act 2005 followed the Baba Kalyani Committee (2018) recommendations for reforming the zone framework.
  • SEZ reforms in 2025 reduced minimum land requirements for semiconductor manufacturing zones from 50 hectares to 10 hectares.
  • The Development Enterprise and Services Hub (DESH) Bill was proposed to replace SEZs with a more inclusive framework allowing domestic sales alongside exports.
  • Odisha currently has multiple operational SEZs, including the Infocity IT/ITES SEZ in Bhubaneswar.

Connection to this news: The proposed SEZ for education within BCPPER represents a novel application of the zone model beyond traditional manufacturing and IT, aligning with the broader policy shift toward multi-sector development hubs.

Regional Development Planning and Odisha's Economic Trajectory

Odisha has transitioned from being one of India's poorest states to a mineral-rich industrial growth story. The state's GSDP grew at over 8% annually in recent years, driven by mining, steel, and aluminium sectors. The BCPPER plan reflects a strategic pivot toward services, innovation, and value-added industries.

  • Odisha is India's largest producer of chromite, nickel ore, and stainless steel, and the second-largest producer of iron ore, manganese, and bauxite.
  • The state's industrial corridor projects include the Paradip-Kendrapara Industrial Corridor along the east coast.
  • Paradip port is one of India's largest major ports by cargo volume, handling over 130 million tonnes annually.
  • The Bhubaneswar-Cuttack twin city region is Odisha's primary urban agglomeration with a combined metropolitan population exceeding 15 lakh.

Connection to this news: The BCPPER plan leverages the region's existing industrial and port infrastructure (especially Paradip) while diversifying into education, IT, and innovation sectors to create a balanced economic growth model.

Key Facts & Data

  • BCPPER current economy: $22.4 billion; target: $500 billion by 2047.
  • The region constitutes 19% of Odisha's economy.
  • Over 80 projects and 30 policy initiatives included in the plan.
  • CER central assistance: Rs 5,000 crore per region over five years.
  • Fifth CER plan after Mumbai, Surat, Visakhapatnam, and Varanasi.
  • Centre plans 20 CERs across India.
  • Sectors covered: metals, biotech, textiles, chemicals, tourism, education, IT.
  • Key proposals: SEZ for education, innovation city, logistics hub.