Odisha Cabinet Okays Rs 12,000-Cr Model School Scheme, Rural Development & Healthcare Initiative

The state cabinet chaired by CM Mohan Majhi gave clearance to proposals ranging from primary education reforms to cold storage expansion and recruitment of doctors

Bhubaneswar: The state cabinet on Wednesday approved 10 major proposals in key sectors like education, rural development, healthcare, and infrastructure at a meeting chaired by Chief Minister Mohan Charan Majhi. The decisions, Majhi said, have been taken with the objective of boosting the state’s development agenda, with a strong emphasis on addressing past shortcomings.

Model Schools Under GMPS Scheme

One of the major announcements at the meeting was the approval of the Godavari Model Primary School Scheme which envisions transforming primary education across schools in Odisha. Under the project, one model school will be developed in each of the 6,794 gram panchayats in the state. With a budget of Rs 12,000 crore, the project aims to establish modern, fully equipped schools from Class I to VIII across the state.

Odisha CM Mohan Majhi addressing a presser (ETV Bharat)

Speaking to media at Samruddha Odisha 2036 and Viksit Bharat 2047 press briefing soon after the Cabinet meet, the CM launched a scathing attack on the previous government’s 5T Smart School project, which he alleged, lacked proper planning and led to criticism.

"In the name of transforming smart schools, the people of Odisha have been cheated. In the 5T transformation initiative neither was there a DPR nor an estimate. Only the old walls were painted. No new infrastructure was created rather the broken walls were whitewashed. The school students do not even know subtraction and multiplication. Smart schools were a big scam," the CM stated.

In contrast, the GMPS scheme, Majhi said, plans to invest Rs 4–5 crore per school, with the first 114 schools set to be developed in the current financial year. The project is expected to be completed by 2028.

Rs 12.5 Lakh Crore Demand Before Finance Commission

Ahead of the 16th Finance Commission’s visit to Odisha from February 5 to 7, the state government has finalised its demand for Rs 12.56 lakh crore to support its upcoming five-year plan. The funds will be allocated for various developmental initiatives across sectors, addressing the state’s long-term financial needs.

Boost to Semiconductor Manufacturing

The Cabinet has approved a special incentive package for RIR Power Electronics Limited to set up India's first silicon carbide semiconductor manufacturing facility in Bhubaneswar. The total financial subsidy has been increased to 50%, with the state committing an additional Rs 110 crore to the Rs 618-crore project. This initiative is expected to generate 750 jobs and strengthen Odisha’s industrial profile.

Cold Storage In 58 Sub-divisions

To support farmers and improve storage facilities, the government announced plans to construct at least one cold storage in each of the 58 sub-divisions. The government will provide 60 percent subsidy with an allocation of Rs 252 crore over five years along with electricity assistance. The non-functional cold storages will be made operational.

New Scheme: Viksit Gaon, Viksit Odisha

Aimed at accelerating rural development, the Cabinet approved the Viksit Gaon, Viksit Odisha programme. With an annual budget of Rs 1,000 crore, the programme will be implemented over five years, with a total outlay of Rs 5,000 crore. Unlike previous schemes, this initiative emphasizes grassroots participation, empowering village councils to propose projects for approval by district collectors.

"The Nabin Odisha scheme was intentionally started just before the elections and benefitted only contractors. But we are starting the scheme which got cabinet approval. All development programmes and decisions will be taken by the village council. Later, it will be approved by the district collector," exhorted Majhi.

Recruitment of Doctors and Dentists

The Cabinet also approved recruitment of 5,000 new doctors and 126 dentists. Amendments to the Odisha Medical and Health Services Rules were also made to facilitate this process, ensuring improved healthcare access for the state’s population.

Support for Power Sector

A government guarantee of Rs 3,108.21 crore was approved for Gridco Limited to reduce the interest burden on term loans obtained on a swap basis. This move is expected to lower electricity costs for consumers while easing financial pressure on the state’s power utility.

The Cabinet meeting, which lasted over two and a half hours, saw Deputy Chief Ministers Kanak Vardhan Singhdeo and Pravati Parida, Revenue Minister Suresh Pujari, Panchayati Raj Minister Rabi Nayak, and Public Education Minister Nityanand Gond besides senior officials like Chief Secretary Manoj Ahuja and Additional Chief Secretary Nikunja Bihari Dhal, in attendance.

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