Odisha Revamps BGBO Scheme: New Project Rules & 3-Year Liability from 2025
Odisha cabinet approves new BGBO scheme procedures

The Odisha state cabinet has given its nod to a significant overhaul in the implementation framework of its flagship rural development programme, the 'Bikashita Gaon Bikashita Odisha' (BGBO) scheme. The revised procedures, approved on Wednesday, aim to streamline project selection and enhance accountability, with the new rules set to take effect from the financial year 2025-26.

New Process for Project Proposals

Under the updated framework, the method for inviting development projects has been made more inclusive and transparent. Need-based project proposals can now be submitted by Panchayati Raj members, elected representatives, and civil society organisations. These entities will be invited through public notices displayed at multiple government offices, including the collectorate, zilla parishad, block, and gram panchayat offices. Additionally, these notices will be published on the respective district web portals to ensure wider reach and accessibility.

Enhanced Scrutiny and Accountability Measures

A key change is the introduction of a structured examination process. All submitted proposals will be rigorously reviewed by a district-level committee. This committee will be chaired by the district collector, who holds the final authority to sanction the approved list of projects.

To fortify quality and responsibility, the government has mandated a three-year defect liability period (DLP) for all projects with an estimated cost exceeding Rs 10 lakh. This clause makes executing agencies legally responsible for any defects or issues arising in the project for three years after completion, ensuring long-term sustainability and contractor accountability.

Implications and Expected Outcomes

The procedural revamp of the BGBO scheme, run by the panchayati raj and drinking water department, is expected to decentralise decision-making and align projects more closely with grassroots needs. By involving local representatives and civil society in the proposal stage, the government aims to prioritise community-identified requirements. The stringent defect liability clause is a major step toward eliminating sub-standard work and ensuring public funds are utilised effectively for durable rural infrastructure. The changes mark a strategic shift towards more accountable and demand-driven rural development in Odisha.