Urban Centres of Odisha

Urbanisation in Odisha: An Overview

Odisha is one of the least urbanised states in India, with only 16.69 per cent of its population classified as urban as per the 2011 Census — less than half the national average. The state’s urban system is characterised by primacy, with Bhubaneswar, the capital city, being the largest urban agglomeration, followed by Cuttack, Rourkela, Berhampur, and Sambalpur. Together, the top five urban centres account for over 60 per cent of the state’s urban population. The urban hierarchy has a thin middle and lower order — there are relatively few medium-sized towns (population 20,000-100,000) that serve as market centres and service hubs for the rural hinterland. The low level of urbanisation reflects the largely agrarian and resource-extractive basis of the economy, the dispersed pattern of settlement in the hilly interior and tribal districts, and the relatively slow pace of industrial job creation in services and manufacturing that would attract rural-to-urban migration.

Bhubaneswar: The Temple City Turned Capital

Bhubaneswar, the capital of Odisha, is a planned city designed by the German architect Otto Königsberger, with the foundation stone laid in 1948, shortly after independence. It replaced Cuttack as the capital, and the city was conceived as a modern administrative centre, complementing the historical and religious identity of the ‘Temple City’ (the old Bhubaneswar, with its cluster of ancient temples around the Bindusagar lake, notably the Lingaraja Temple). The initial plan envisioned a city of about 40,000 population; today, the Bhubaneswar Urban Agglomeration houses over 1.1 million people, making it the only million-plus city in Odisha.

Bhubaneswar’s economic base is diversified. As the state capital, it is the centre of the state government administration and politics. The establishment of the Software Technology Park (STP) and the Info City complex has attracted IT and ITES companies including Infosys, TCS, Wipro, and Tech Mahindra, making Bhubaneswar a Tier-2 IT destination. The city is also the educational capital of Odisha, housing institutions such as Utkal University, IIT Bhubaneswar, NISER (National Institute of Science Education and Research), AIIMS Bhubaneswar, Xavier Institute of Management (XIM), and the Institute of Physics. The health sector, with AIIMS, Kalinga Hospital, and several private multi-speciality hospitals, serves not only the city but the wider eastern region. The service sector — retail, hospitality, real estate, and financial services — is the largest employer. Bhubaneswar has been expanding rapidly, with the city limits extending into the formerly rural areas of Khordha and Puri districts, creating the Bhubaneswar Urban Complex (which includes the planned infocity and the Jatni municipality area).

Cuttack: The Silver City and Commercial Hub

Cuttack, the former capital of Odisha (until 1948), is located at the head of the Mahanadi delta where the river bifurcates into its distributaries. With a population of approximately 6.5 lakh (2011 — Cuttack urban agglomeration), it is the second-largest city, often described as the commercial and cultural capital. Cuttack’s economy is based on trade, commerce, and agro-processing (rice milling, oil milling), and it is the primary wholesale market for the Mahanadi delta’s agricultural produce. The city is famous for its silver filigree (tarakasi) work, a heritage craft with a GI tag. Cuttack is also home to the Barabati Fort (historic), the Barabati Stadium (a major international cricket venue), the Srirama Chandra Bhanja (SCB) Medical College and Hospital (one of the oldest and largest in eastern India), and the Odisha High Court. The industrial suburb of Choudwar houses ferroalloy and textile units. The city’s proximity to the industrial estates of Jagatpur and the port town of Paradip enhances its commercial significance. Cuttack and Bhubaneswar, located only about 25 kilometres apart, function as a de facto twin-city agglomeration, with a combined population exceeding 1.8 million, connected by a busy highway corridor.

Rourkela: The Steel City

Rourkela, in Sundargarh district, is the preeminent industrial city of Odisha, developed around the Rourkela Steel Plant (RSP), established in 1955. The city was planned and built by the German collaboration firm that constructed the steel plant, and it retains the planned layout with sectors (residential areas) designated numerically. Rourkela’s population is approximately 5.5 lakh (urban agglomeration). The economy of the city is dominated by the steel plant and its ancillary and downstream industries — rolling mills, engineering workshops, and fabrication units. The National Institute of Technology (NIT) Rourkela is one of the premier engineering institutions in India and contributes to the city’s technical human capital. Rourkela is also a divisional headquarters of the South Eastern Railway. The city’s location at the junction of the iron ore, manganese, and coal belts fundamentally determines its industrial character. The surrounding Sundargarh district is predominantly tribal, and Rourkela represents an island of industrial employment and urban services in a largely agrarian and mining landscape.

Berhampur, Sambalpur, and Other Urban Centres

Berhampur (Brahmapur), in Ganjam district on the southern coastal plain, is the largest city in southern Odisha and the fourth-largest urban centre, with a population of approximately 3.5 lakh. It is a commercial and educational hub, known for the Berhampur University, the MKCG Medical College, the Berhampur silk saree weaving industry, and its role as the principal market and service centre for the districts of Ganjam, Gajapati, and parts of Kandhamal and Rayagada.

Sambalpur, on the Mahanadi River in the Central Tablelands, is the principal urban centre of western Odisha, with a population of about 3 lakh. It is an administrative (divisional headquarters), educational (Sambalpur University, Veer Surendra Sai Institute of Medical Sciences and Research — VIMSAR, formerly VSS Medical College), and commercial centre. The Hirakud reservoir and the proximity to the aluminium (Hindalco) and power generation (NTPC Talcher) complexes provide an industrial dimension. Sambalpur is also the cultural heart of western Odisha, associated with the Nuakhai festival and the Sambalpuri textile tradition.

Other notable urban centres include Jharsuguda (airport, power and aluminium hub), Puri (temple town with a massive tourism economy), Angul (aluminium and power), Balasore (administrative and commercial centre of northern coastal Odisha, close to the missile testing range at Chandipur), Baripada (district headquarters of Mayurbhanj, gateway to Similipal), Jeypore and Koraput (principal towns of the Koraput plateau), and Bhadrak and Jajpur (growing industrial towns along the minerals-industrial corridor). The urban hierarchy in Odisha is evolving, with the smaller district headquarters and industrial towns gradually acquiring a greater range of economic functions and attracting population, driven by improved connectivity, the spread of educational institutions, and the expansion of non-farm employment in services, construction, and trade.