The Chief Minister's Office of Odisha announced on Tuesday, 9 June 2026 that the state cabinet has approved two major water infrastructure projects — a spillway for the Nayagarh 'Bruttanga Irrigation' project and a new bridge-cum-barrage at Sambalpur — along with a wastewater treatment facility on the Daya River, committing a combined outlay exceeding Rs 634 crore.

Context

The cabinet post, written in Odia, states: 'Jala sampada ra suraksha saha jala yogana byabastha heuchi majhbuta' ('Water resource protection and water supply systems are being strengthened'). The announcement bundles three distinct approvals — irrigation expansion in Nayagarh, urban water infrastructure in Sambalpur, and river pollution control near Bhubaneswar — into a single cabinet decision, a pattern consistent with how Odisha has historically packaged water sector investments.

Policy Backdrop

For the Nayagarh Bruttanga Irrigation project, the cabinet has approved a project expenditure of over Rs 194 crore for spillway construction. Once complete, the project is expected to bring 23,300 hectares of cultivable land under assured irrigation — a significant shift for a district that has long depended on rain-fed agriculture. Odisha has been steadily expanding irrigation coverage under state schemes and frameworks aligned with the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) since the early 2010s, and this approval continues that trajectory.

In Sambalpur, the ageing Ayodhyasagar Weir will be replaced by a modern in-river reservoir and a bridge-cum-barrage, for which the cabinet has sanctioned over Rs 440 crore. Sambalpur sits near the Mahanadi basin and has historically drawn on the Hirakud reservoir system, but municipal water supply reliability has remained a persistent concern for the city and its surrounding areas.

Stakeholders and Impact

Farmers across Nayagarh district stand to be the most direct beneficiaries, with nearly 23,300 hectares of previously unirrigated or rain-dependent farmland gaining access to assured water supply. For Sambalpur city residents and nearby localities, the replacement of the old weir with a modern barrage is expected to provide more reliable drinking and municipal water through the year.

A third approval addresses water quality on the Daya River — a river that originates near Bhubaneswar and drains into Chilika Lake. Wastewater and effluents flowing through the Gangua Nala will be intercepted, diverted, and treated at a new Sewage Treatment Plant (STP) to be built at the confluence of the Daya River and Gangua Nala, before the waste reaches the river. The cabinet has approved the construction, operation, and maintenance of this facility, which is aimed at restoring water quality in a stretch under sustained urban pollution pressure.

What's Next

Following cabinet approval, the immediate steps will include tendering processes, land acquisition where required, and appointment of project implementation agencies. Observers will watch whether the state seeks central co-financing under schemes such as AMRUT 2.0 for the Sambalpur urban water project or under PMKSY for the Nayagarh irrigation component. Progress on these projects is also likely to feature in the next state budget cycle as indicators of capital expenditure delivery in the water sector.