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The Missing Middle Cities: Sambalpur, Berhampur, Balasore, Baripada, and the Urban Hierarchy Gap

Research document for SeeUtkal | Compiled: 2026-04-04 Feeds into: Chapter 6 (The Missing Middle) and Chapter 7 (What a City Needs) Word count target: ~10,000-12,000 words

Table of Contents

  1. The Urban Hierarchy Concept
  2. Sambalpur
  3. Berhampur (Brahmapur)
  4. Balasore (Baleshwar)
  5. Baripada
  6. Other Notable Towns
  7. Why Middle Cities Fail in Odisha — Structural Analysis
  8. Comparative: Middle Cities That Work
  9. What Would Create Functional Middle Cities in Odisha

1. The Urban Hierarchy Concept

1.1 Why Middle Cities Matter

Urban systems do not function as a binary between megacities and villages. Between the primary city and the rural hinterland, functional urban hierarchies require a chain of intermediate cities that serve as economic nodes, service delivery centres, and labour market anchors for their surrounding regions. These middle cities — sometimes called secondary cities or Tier-2/Tier-3 cities — perform critical functions that neither the primary city nor the village can:

  • Economic intermediation: They aggregate agricultural produce, distribute manufactured goods, and provide specialised services (healthcare, higher education, legal, financial) that rural areas cannot sustain independently.
  • Labour market absorption: They absorb surplus rural labour without requiring the extreme dislocation of migration to a distant megacity.
  • Innovation diffusion: New technologies, business practices, and cultural norms typically diffuse from the primary city through the intermediate city network before reaching rural areas.
  • Governance decentralisation: Effective governance requires regional administrative centres with sufficient institutional capacity to respond to local conditions — not everything can be administered from the state capital.

When this intermediate layer is missing or dysfunctional, the consequences are severe: rural populations must either endure chronic underservice or migrate directly to the primary city (or out of state entirely), creating congestion in the primary city, hollowing out the countryside, and leaving vast regions without a functional economic centre.

1.2 Zipf’s Law and the Rank-Size Rule

In 1949, George Kingsley Zipf formalised the observation that in a well-functioning urban system, the population of a city is inversely proportional to its rank. If the largest city has population P, the second-largest city should have approximately P/2, the third-largest P/3, and so on. This “rank-size rule” describes a log-linear distribution of city sizes — a gradual descent from the largest to the smallest.

The rule is an idealisation, but it captures a fundamental insight: a healthy urban system has cities at every scale. Deviations from the rank-size rule reveal structural imbalances:

  • Primate city distribution: When the largest city is disproportionately larger than the second city (primacy ratio > 2), the urban system is “top-heavy.” This is associated with centralised governance, colonial extraction patterns, and underinvestment in secondary cities.
  • Flat distribution: When multiple cities are roughly equal in size, the system may lack a coordinating centre but has distributed economic capacity.

India does not conform to the rank-size rule at the national level — Mumbai, Delhi, and Kolkata are too close in size for a single primate city. But at the state level, primacy is pervasive: at least 15 of India’s states exhibit primate city patterns, indicating that within states, the urban hierarchy is frequently broken.

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1.3 India’s Functional Urban Hierarchies: Three Models That Work

Tamil Nadu: The Gradual Descent

Tamil Nadu offers India’s best example of a distributed urban hierarchy:

RankCityPopulation (UA, 2011)Key Economic Function
1Chennai~8.7 millionAuto, IT, port, state capital
2Coimbatore~2.1 millionTextiles, engineering, IT, startups
3Madurai~1.5 millionTemples, education, trade hub
4Tiruchirappalli~1.0 millionEngineering, BHEL, education
5Tiruppur~0.9 millionKnitwear exports, textiles
6Salem~0.8 millionSteel, agriculture, transport hub

The descent from Chennai to Coimbatore to Madurai is gradual. Each city has an independent economic identity — Coimbatore does not merely serve Chennai, it has its own industrial ecosystem. The result: Tamil Nadu’s urbanisation rate (48.4% in 2011) is among India’s highest, and the economic benefits of urbanisation are distributed across regions, not concentrated in Chennai alone.

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Gujarat: Multiple Strong Cities

Gujarat’s urban hierarchy features remarkable balance among its top four cities:

RankCityPopulation (UA, 2011)Key Economic Function
1Ahmedabad~6.4 million (est. 2024: ~7.9M)Finance, pharma, textiles, GIFT City
2Surat~4.6 million (est. 2024: ~7.3M)Diamonds, textiles, port
3Vadodara~1.8 million (est. 2024: ~2.3M)Chemicals, engineering, IPCL
4Rajkot~1.3 million (est. 2024: ~1.6M)Engineering, auto parts, SMEs
5Bhavnagar~0.6 millionShip-breaking, diamond, salt

Four cities account for 53% of Gujarat’s entire urban population. The critical feature: each city has a distinct economic identity driven by entrepreneurial clusters, not government employment. Surat’s diamond-cutting industry, Rajkot’s 23,000+ engineering SMEs, Vadodara’s petrochemical complex — these are self-sustaining economic engines.

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Karnataka: Bangalore Dominance, but Functional Secondary Tier

Karnataka exhibits stronger primacy than Tamil Nadu or Gujarat — Bangalore (~12.3 million UA) dominates. But the state has developed functional secondary cities:

RankCityPopulation (UA, 2011/est.)Key Economic Function
1Bangalore~8.5 million (2011)IT, biotech, aerospace, state capital
2Hubli-Dharwad~0.9 million (est. 2024: ~1.2M)Trade, manufacturing, education
3Mysore~0.9 million (est. 2024: ~1.2M)IT second city, heritage tourism, education
4Mangalore~0.6 millionPort, petrochemicals, banking, education
5Belgaum~0.6 millionManufacturing, textiles, sugar

Mysore has been recognised as India’s #1 Tier-II city for IT promotion. Hubli-Dharwad is one of McKinsey’s 49 selected metropolitan growth hotspots in India. Mangalore has a deep port, petrochemical refinery, and is home to a distinctive banking tradition. These cities are not Bangalore’s satellites — they have independent economic identities.

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1.4 Odisha’s Broken Hierarchy

Now compare Odisha:

RankCityPopulation (UA/MC, 2011)Est. 2024-26Key Function
1Bhubaneswar-Cuttack~1.7 million (twin city UA)~2.0M+State capital, IT, admin, trade
2Rourkela~0.55 million (UA)~0.7MSteel (SAIL RSP), NIT
3Berhampur~0.36 million (MC)~0.45-0.53MTrade, silk, district HQ
4Sambalpur~0.18 million (MC)~0.28MCoal (MCL HQ), education, district HQ
5Balasore~0.14 million (MC)~0.17MDRDO, transit, district HQ
6Baripada~0.12 million (MC)~0.14MDistrict HQ, Simlipal gateway
7Bhadrak~0.11 million~0.16MTransit, agriculture, district HQ

The gap is the story. Between the Bhubaneswar-Cuttack twin city (~2 million) and the next functional urban centre (Rourkela at ~700K), there is nothing. Between Rourkela and Berhampur (~450-530K), there is nothing. No Odisha city occupies the 500K-1M range with an independent economic identity. No city outside the Bhubaneswar-Cuttack corridor functions as a regional economic anchor capable of retaining graduates, attracting private investment, or providing the full range of urban services that its hinterland requires.

The primacy ratio tells the story starkly: Bhubaneswar-Cuttack’s population is roughly 3x Rourkela’s, 4-5x Berhampur’s, and 7-8x Sambalpur’s. In Tamil Nadu, Chennai is about 4x Coimbatore. In Gujarat, Ahmedabad is barely 1.1x Surat. Odisha’s urban hierarchy is not merely top-heavy — it is functionally broken below the first tier.

What is missing: No city in the 500K-1M range. No regional economic centre that can anchor development in its zone. No city outside Bhubaneswar-Cuttack that generates its own economic gravity rather than merely administering its district.

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2. Sambalpur

2.1 Overview and Demographics

Sambalpur is western Odisha’s largest city, with a municipal population of ~184,000 (2011 Census) and an estimated 2026 population of ~275,000 (municipal) to ~404,000 (metropolitan agglomeration including Burla, Hirakud, and surrounding areas). It serves as the headquarters of Sambalpur district and is the de facto capital of the ten-district western Odisha region.

2.2 Historical Significance

Sambalpur’s identity is rooted in a distinctly separate historical trajectory from coastal Odisha. The Sambalpur princely state, ruled by the Chauhan dynasty, was one of the most significant political entities in western India. Its most famous figure, Veer Surendra Sai (1809-1884), waged a decades-long resistance against British annexation beginning in 1827, making Sambalpur one of the last territories occupied by the British in India (excluding princely states). Sai was arrested in 1840, freed during the 1857 uprising, continued resistance until 1862, and died in captivity at Asirgarh Fort in 1884.

The princely states of western Odisha merged with the Indian Union in January 1948, and Sambalpur became part of Odisha. This relatively recent merger is critical context: western Odisha had a different administrative tradition, a different dialect (Sambalpuri/Kosali), and a different cultural identity from the coastal Odia mainstream. The Kosali movement, which demands a separate Koshal state carved from 10 western Odisha districts, reflects this persistent identity distinction. The movement gained momentum after the creation of Telangana in 2014, with organisations like the Kosal Kranti Dal, Koshli Ekta Manch, and All Kosal Students Union (AKSU) arguing that western Odisha’s chronic underdevelopment is a consequence of coastal Odisha’s political dominance.

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2.3 Educational Institutions

Sambalpur has a surprisingly dense cluster of higher education institutions for its size:

InstitutionTypeEstablishedNotes
Sambalpur UniversityState university1967Jyoti Vihar campus in Burla, fulfilling “long cherished dream of western Odisha”
VSSUT (Veer Surendra Sai University of Technology)Technical university1956 (as UCE Burla), converted to university 2009First engineering college in Odisha
IIM SambalpurNational institute2015Indian Institute of Management
VIMSARMedical college1971Veer Surendra Sai Institute of Medical Sciences and Research
Gangadhar Meher UniversityState university2015 (upgraded)Arts and science
Odisha State Open UniversityOpen university2015Headquartered in Sambalpur

In 2024, these seven major institutions formed India’s first academic cluster — SEARCH (Sambalpur Education and Research Cluster Hub) — under a unified academic framework. This is a significant institutional development, potentially creating the critical mass of academic infrastructure needed for a regional knowledge hub.

The paradox: Despite this institutional density, western Odisha loses most of its graduates. The universities produce engineers, MBAs, doctors, and researchers — who then migrate to Bhubaneswar, Bangalore, Hyderabad, or Delhi. The institutions exist; the economic ecosystem to absorb their graduates does not.

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2.4 Hirakud Dam: The Displacement That Didn’t Build a City

Hirakud Dam, completed in 1957 across the Mahanadi River near Sambalpur, is one of the longest earthen dams in the world (25.8 km including dykes). It displaced approximately 150,000 people across 249 villages. The dam created a massive reservoir (743 sq km) that provides irrigation, flood control, and hydroelectric power.

But the dam’s economic benefits flowed outward — irrigation for coastal Odisha’s delta, electricity for the state grid, industrial water for downstream factories — while its costs (displacement, loss of farmland, loss of forest) were borne by western Odisha. This is the template that the Kosali movement consistently references: western Odisha provides resources (coal, water, land, labour), coastal Odisha captures the value.

The dam area itself — Hirakud town, Burla — became part of the Sambalpur metropolitan area but never developed into an economic centre. The dam workers, the university staff, the government employees form a consumption economy, not a production economy.

2.5 Mahanadi Coalfields Limited (MCL)

MCL, headquartered in Sambalpur (Jagruti Vihar), is one of the eight subsidiaries of Coal India Limited and among India’s largest coal producers, achieving 203 million tonnes of production in December 2024 (9.8% increase year-on-year). MCL operates mines across Jharsuguda, Angul, and Sonepur districts.

The structural problem: MCL’s headquarters bring administrative employment to Sambalpur, but the mining operations are dispersed across distant sites. Miners commute to mining areas; they do not settle in Sambalpur. The coal leaves western Odisha as raw material for power plants and industries located elsewhere. MCL generates significant revenue but minimal urbanisation effect in Sambalpur itself — a pattern consistent with the extraction equilibrium documented across Odisha’s mineral economy.

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2.6 Sambalpuri Handloom: The Cultural Economy

The Sambalpuri saree and textile tradition — characterised by the distinctive “bandha” (ikat/tie-dye) technique — is one of India’s most recognised handloom traditions. The weaving is done across multiple villages in Sambalpur, Bargarh, Sonepur, and Boudh districts. The tradition has Geographical Indication (GI) status.

This represents a genuine cultural economy — rooted in local skill, local materials, and centuries of tradition — that could anchor a creative economy ecosystem. However, the industry faces familiar challenges: middlemen capturing margins, lack of direct market access, competition from power looms, and insufficient design innovation. No systematic effort has linked the Sambalpuri textile economy to modern design, branding, or digital retail at the scale that could transform it from a cottage industry into a regional economic anchor.

2.7 Infrastructure and Connectivity

  • Air: Veer Surendra Sai Airport at Jharsuguda (JRG), approximately 30 km from Sambalpur, is western Odisha’s primary airport and the second most important commercial airport in Odisha after Bhubaneswar. It offers direct flights to Delhi, Hyderabad, Bhubaneswar, Kolkata, Raipur, Ranchi, Bangalore, Chennai, and Varanasi.
  • Rail: Sambalpur Junction is a major railway junction connecting western Odisha to Mumbai, Kolkata, Delhi, and Chennai. The Sambalpur-Titlagarh-Raipur line connects to Chhattisgarh.
  • Road: NH-53 (Kolkata-Mumbai highway) passes through Sambalpur. NH-55 connects to Cuttack/Bhubaneswar.

2.8 Smart City and AMRUT Status

Sambalpur was one of five Odisha cities proposed for the Smart Cities Mission (alongside Bhubaneswar, Cuttack, Rourkela, and Balasore) and was included in the approved list of 100 Smart Cities. It is also covered under AMRUT (Atal Mission for Rejuvenation and Urban Transformation). Nine Odisha cities are under AMRUT: Bhubaneswar, Cuttack, Berhampur, Sambalpur, Rourkela, Puri, Balasore, Baripada, and Bhadrak.

2.9 What Sambalpur Would Need to Become a Functional Regional City

Sambalpur has more institutional assets than any other non-capital city in Odisha: a university cluster, an IIM, a medical college, a nearby airport, MCL headquarters, a rich cultural tradition. Yet its population remains under 300K and it generates no economic gravity. The gap between institutional presence and economic function is the central diagnostic.

What is missing: (a) an industrial or service-sector anchor that creates private-sector employment at scale; (b) quality-of-life infrastructure (reliable water, drainage, parks, cultural spaces) that makes the city attractive to educated professionals; (c) a mechanism to convert the academic output of its universities into local entrepreneurship rather than export migration; (d) a governance structure with the revenue capacity and planning authority to drive urban development.

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3. Berhampur (Brahmapur)

3.1 Overview and Demographics

Berhampur (officially Brahmapur) is southern Odisha’s largest city, with a municipal corporation population of 356,598 (2011 Census) and an estimated 2026 population of ~455,000-534,000. It is the headquarters of Ganjam district and the commercial hub for all of southern Odisha, including Ganjam, Gajapati, Kandhamal, and parts of Nayagarh.

Berhampur is 169 km south of Bhubaneswar and 255 km north of Visakhapatnam (Andhra Pradesh), placing it on the Chennai-Kolkata corridor (NH-16) — a strategic position on India’s eastern coast.

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3.2 The Migration Paradox

Ganjam district sends the most migrants out of any district in Odisha. The Ganjam-Surat migration corridor has existed for over 80 years, with an estimated 700,000 Odias from Ganjam working in Surat’s powerloom industry alone. The Odisha Migration Survey 2023 found that Ganjam has 373,254 current migrants — the highest of any district — with 40% going to Gujarat. Ganjam receives the highest remittances in Odisha at nearly Rs 120 crore per month.

The paradox is stark: The district that produces the most labour migrants has a city (Berhampur) of half a million people that could theoretically absorb a significant portion of that labour — but doesn’t. Why? Because Berhampur offers no industrial employment at scale. The migrants leave not because Berhampur doesn’t exist, but because it offers nothing that competes with Surat’s wages. This is the clearest illustration of the middle city failure: the city is physically present but economically absent.

If even 10% of Ganjam’s outward migrants could be absorbed by Berhampur-based industries, that would be 37,000 additional workers — enough to transform the city’s economic character. But no such industries exist.

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3.3 Silk Industry: The Berhampuri Patta

Berhampur is known as the “Silk City” for its centuries-old silk weaving tradition. The Berhampuri Patta saree — characterised by thick, textured silk with distinctive Odissi-style weaving and kumbha/phoda/temple designs — has Geographical Indication (GI) status. The craft dates to the 14th century, attributed to the Mohuri kings who introduced silk weaving and trade through Gopalpur Port.

One saree requires up to 7 days of work at 12 hours per day. The industry supports thousands of weaver families. Yet it remains a cottage industry without the institutional support (design schools, direct retail platforms, export facilitation, brand development) that could transform it into a significant economic engine. The comparison with Surat is instructive: Surat’s powerloom industry industrialised textile production and became a city-shaping economic force; Berhampur’s handloom tradition remained artisanal and city-shaped by other forces.

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3.4 Educational Institutions

InstitutionTypeNotes
Berhampur UniversityState universityEstablished 1967, serves southern Odisha
MKCG Medical CollegeGovernment medical collegeEst. 1962; 250 MBBS seats, 138 PG seats, 1,190 beds; largest campus (162 acres) of any government medical college in Odisha; only major medical institution in southern Odisha
Khallikote Cluster UniversityUniversityUpgraded from college
IISER BerhampurNational instituteIndian Institute of Science Education and Research

MKCG Medical College is particularly significant — as the only tertiary healthcare centre for all of southern Odisha, it serves as a referral hospital for a vast region. This creates a healthcare anchor that could, in theory, seed a health-services economy (pharmacy, diagnostics, medical equipment, health IT) around Berhampur — but this has not happened.

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3.5 Gopalpur Port and Industrial Potential

Gopalpur Port, a minor port located ~16 km from Berhampur, represents perhaps the most significant untapped asset for Berhampur’s transformation. In March 2024, Adani Ports and Special Economic Zone acquired a 95% stake in the port for Rs 1,349 crore. Structured investments of Rs 16,554-18,654 crore have been committed for port expansion and adjacent industrial/SEZ infrastructure.

Additionally, the Adani Group has proposed developing an economic corridor connecting Gopalpur Port to Jeypore via Rayagada under the PM GatiShakti scheme, which would reduce travel time between Ganjam and Jeypore from nine hours to three and a half hours.

Gopalpur Port is part of Node-1 of the Odisha Economic Corridor under the National Industrial Corridor Development Program (NICDIT), linking Gopalpur-Bhubaneswar-Kalinganagar industrial areas.

If the port expansion materialises at the committed scale, it could fundamentally transform Berhampur’s economic character — creating logistics, manufacturing, and service employment that the city currently lacks. But Odisha has a long history of announced investments that do not materialise at promised scale (the POSCO pattern).

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3.6 Smart City/AMRUT Status and Infrastructure

Berhampur was proposed for the Smart Cities Mission but was not selected in any of the rounds — only Bhubaneswar and Rourkela were chosen from Odisha. However, Berhampur is covered under AMRUT, with projects focused on water supply, sewerage, storm water drainage, and parks. The Brahmapur Municipal Corporation administers 74,720 houses and provides basic water and sewerage services.

A Berhampur airport near Rangeilunda has been proposed, which would significantly enhance connectivity. Currently, the nearest airport is Bhubaneswar (169 km).

Real estate development is emerging, with Berhampur increasingly seen as a Tier-3 investment destination. Property prices remain affordable (residential properties ranging from Rs 55 lakh to Rs 2 crore), and the city is being positioned as a potential secondary IT hub after Bhubaneswar. Terminal markets for agricultural produce are planned.

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3.7 What Berhampur Would Need

Berhampur’s transformation hinges on three potential catalysts, each uncertain: (a) Gopalpur Port expansion creating an industrial-logistics corridor; (b) the proposed airport enabling connectivity-dependent sectors (IT services, tourism); (c) a deliberate state strategy to position Berhampur as southern Odisha’s economic anchor rather than merely its administrative one. Without at least one of these materialising at scale, Berhampur will remain a consumption city dependent on government salaries and remittances.

4. Balasore (Baleshwar)

4.1 Overview and Demographics

Balasore is the principal city of northern Odisha, with a municipal population of ~144,000 (2011 Census) and an estimated 2026 population of ~170,000. It is the headquarters of Balasore district and sits on NH-16, the main coastal highway connecting Kolkata (240 km) to Bhubaneswar (200 km).

4.2 DRDO and Defence Establishment

Balasore’s most distinctive feature is the Integrated Test Range (ITR) at Chandipur, operated by DRDO. Abdul Kalam Island (formerly Wheeler Island), located ~70 km off the coast in the Bay of Bengal, is the primary launch site for India’s missile testing programme. Nearly all of India’s strategic missiles — Agni, Prithvi, Akash, BrahMos, Astra, Nirbhay, Shaurya, and the ASAT anti-satellite weapon — have been tested from this facility.

Chandipur beach itself is famous for the “vanishing sea” phenomenon — tides that cause the sea to recede up to 5 km twice daily, exposing the seabed. This natural phenomenon, combined with the DRDO facility, makes Chandipur a unique combination of defence establishment and potential tourism attraction.

The defence economy’s structural limitation: DRDO facilities create high-skill, high-security employment — but this employment is insular. Defence scientists and engineers live in townships, consume in local markets, but do not generate entrepreneurial spillovers into the civilian economy. The security requirements actively prevent the kind of knowledge-spillover and supply-chain development that a comparable civilian research establishment might create. Balasore has had one of India’s most advanced defence research facilities for decades, yet the city remains at 170K population with no visible technology ecosystem.

This is a documented pattern worldwide: defence establishments in small cities create enclaves, not ecosystems. The comparison with Bangalore is instructive — Bangalore’s defence and aerospace establishment (HAL, DRDO labs, ISRO) seeded an ecosystem because Bangalore was already a large, diversified city with universities, a services sector, and entrepreneurial culture. Balasore has the defence establishment without any of the surrounding ecosystem.

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4.3 Historical Significance

Balasore has deep historical roots as one of the earliest sites of European commercial activity in Odisha. The British East India Company established a factory (trading post) here in 1633, making it one of their earliest footholds in eastern India. The town’s name derives from “Baleswara” (Lord of Sand), referring to the shifting sand formations of the coast.

4.4 Economy and Education

Beyond the DRDO establishment, Balasore’s economy is primarily agricultural (paddy, wheat on fertile alluvial soils) and industrial in a limited sense (Emami Paper Mills, Birla Tyres). Fishing and tourism provide supplementary income. Fakir Mohan University (named after the father of Odia fiction, Fakir Mohan Senapati) provides higher education, and Fakir Mohan Medical College and Hospital was established in 2018.

Balasore is covered under AMRUT and was included in the Smart Cities Mission list (five Odisha cities were proposed: Bhubaneswar, Rourkela, Cuttack, Sambalpur, and Balasore/Baleswar).

4.5 Why Balasore Hasn’t Grown

Despite its strategic position on NH-16 between Kolkata and Bhubaneswar, its DRDO facility, and its historical significance, Balasore remains a small town. The reasons are structural: (a) the defence economy does not spill over; (b) no civilian industrial anchor exists; (c) the city serves as a transit point rather than a destination; (d) the educated population leaves for Bhubaneswar, Kolkata, or beyond; (e) flooding vulnerability (the district is flood-prone, particularly the Bhadrak-Balasore coastal belt) deters investment.

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5. Baripada

5.1 Overview and Demographics

Baripada is the headquarters of Mayurbhanj district with a population of ~117,000 (2011 Census). It was the capital of the Mayurbhanj princely state since the 15th century, and Mayurbhanj was the last princely state to merge with India — acceding on 1 January 1949 under Maharaja Pratap Chandra Bhanja Deo.

5.2 Tribal Hinterland

Mayurbhanj is the third most populous district in Odisha (after Ganjam and Cuttack) and has the largest tribal population of any district in the state. Scheduled Tribes and Scheduled Castes constitute 58.72% and 7.33% of the total population respectively. The major tribal communities include Santhal, Kolha (Ho), Bhuiyan, Munda, and Kisan.

This is critical context: Baripada is the administrative centre for a vast tribal hinterland that requires culturally sensitive governance, tribal welfare administration, and development approaches that differ fundamentally from what works in coastal Odisha. Yet Baripada lacks the institutional capacity to serve this role effectively.

5.3 Simlipal and Ecotourism Potential

Mayurbhanj is home to the Simlipal Tiger Reserve and Simlipal National Park — one of India’s premier wildlife areas, with tigers, elephants, and extraordinary biodiversity. The district also has three iron-ore mines at Gorumahisani, Badampahar, and Sulaipat (spanning 2,382 hectares, producing 2,040 MT valued at Rs 11,698 crore). Tourism through 19 identified centres, including Simlipal, contributes modestly.

Baripada could be an ecotourism gateway — the Shimla or Manali of eastern India’s tiger country. But the infrastructure for this doesn’t exist: limited hotels, poor road connectivity to Simlipal, no airport, no organised tourism ecosystem. The potential is visible; the realisation is absent.

5.4 Education

North Orissa University is located in Baripada, serving the northern districts. Educational institutions have been growing, with Baripada emerging as a regional education hub. The district is covered under AMRUT.

5.5 What Baripada Represents

Baripada is the archetype of the district town that should be a regional node but lacks everything required to be one. It has administrative function, a university, proximity to a major wildlife asset, a rich cultural heritage (the Bhanja dynasty’s centuries-long rule), and a tribal hinterland that needs a functional service centre. But it has no industry, no connectivity, no tourism infrastructure, no cultural facilities, and no economic reason for anyone to stay rather than leave.

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6. Other Notable Towns

6.1 Jeypore (Koraput District)

Population: ~85,000 (2011 municipal). Jeypore is the business hub for southern Odisha and the bordering towns of Andhra Pradesh. Located on the road connecting Visakhapatnam to Raipur, it sits at the gateway to tribal southern Odisha and the Dandakaranya region. The Dandakaranya Development Authority was headquartered at Koraput in 1958. Jeypore has high potential due to rich mineral deposits (aluminium ore, manganese, limestone) and agricultural output (rice, sugarcane, oilseeds). The proposed Gopalpur-Jeypore economic corridor under PM GatiShakti could transform connectivity. Currently, the town is isolated — the nine-hour road journey to Ganjam (which the corridor would cut to three and a half hours) indicates the depth of the connectivity deficit.

Source: Jeypore – Wikipedia

6.2 Bhadrak

Population: ~107,000 (2011 municipal), estimated ~159,000 (2026). Located on NH-16, 130 km northeast of Bhubaneswar, Bhadrak is a growing transit town. It hosts FACOR (one of India’s largest Ferro Chrome manufacturers) and has above-average literacy (79.5%). However, severe flooding (notably in 2014) constrains development. Covered under AMRUT. Bhadrak represents the transit-town problem: NH-16 traffic passes through but does not stop.

Source: Bhadrak – Wikipedia

6.3 Puri

Population: ~201,000 (2011 UA). Puri is one of India’s Char Dham pilgrimage sites, with the Jagannath Temple as its anchor. The Shree Jagannath Heritage Corridor, inaugurated January 2024, deployed over Rs 4,200 crore in temple-linked urban upgrades. Puri was upgraded to a municipal corporation in July 2025.

However, Puri is not an economic centre — it is a pilgrimage/tourism city. Its economy is almost entirely dependent on temple-related activity and seasonal beach tourism. It does not provide the diversified employment base that a middle city needs. The Konark-Puri tourist corridor (including a proposed Rs 492 crore Puri-Konark rail line, 32 km, expected to generate 11 lakh man-days of employment) could strengthen tourism infrastructure, but tourism alone has not made any Indian city a functional middle city.

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6.4 Jajpur (Kalinganagar)

Kalinganagar, in Jajpur district, is the most significant exception to the pattern of failed middle-city development in Odisha. Tata Steel’s green-field integrated steel plant (Phase I: 3 MTPA commissioned 2016; Phase II expansion to 8 MTPA completed 2024 at Rs 27,000 crore, making total cumulative Tata Steel investment in Odisha over Rs 100,000 crore) has created a genuine industrial anchor. Around 15 steel plants operate in the area, including NINL, JSL, and MESCO.

Kalinganagar was projected to be developed for a population of over 10 lakh by 2025, extended to 177 sq km. If this materialises, it would be the first genuinely new industrial city in Odisha — but it is an industrial township, not an organic city. Its development is corporate-driven, not community-driven, and its history includes the trauma of the 2006 Kalinganagar firing (13 tribal people killed during forced displacement for Tata Steel).

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6.5 Other District Headquarters

TownDistrictPopulation (2011)Notable Feature
KendraparaKendrapara~41,000Bhitarkanika proximity, flood-prone
DhenkanalDhenkanal~68,000Historical princely state
PhulbaniKandhamal~34,000Kandhamal district HQ, tribal area
KoraputKoraput~40,000Tribal district HQ, HAL facility

These are towns, not cities. Most are under 70,000 population and function purely as administrative centres — places where the district collector sits, the court operates, and government employees consume. They generate no economic activity beyond government salaries.

Source: RCUES Lucknow – Population of class-wise towns in Orissa

7. Why Middle Cities Fail in Odisha — Structural Analysis

7.1 No Local Economic Engine

The fundamental problem is that Odisha’s secondary cities exist because they are district headquarters, not because they produce anything. They are administrative artifacts, not economic organisms.

Consider the economic function of each:

  • Sambalpur: Government offices + university employment + MCL headquarters
  • Berhampur: Government offices + trade (redistribution, not production) + handloom
  • Balasore: Government offices + DRDO enclave + transit
  • Baripada: Government offices + university

In every case, government employment is the primary urban function. And government employment in India is increasingly concentrated in the state capital — Bhubaneswar houses the secretariat, the high court, the regulatory bodies, and the headquarters of most state-level agencies. The district headquarters gets the district collector and a few department offices. This is not enough to build a city.

Compare with Coimbatore (textiles to engineering to IT — each transition driven by private enterprise), Rajkot (23,000+ engineering SMEs), or Surat (diamond cutting, textiles — entirely private-sector driven). These cities have economic engines that exist independent of government. Odisha’s secondary cities have no such engine.

7.2 Government Employment Concentration in Bhubaneswar

Odisha’s administrative structure is highly centralised. The state secretariat, high court, major hospitals (AIIMS Bhubaneswar, Capital Hospital, Kalinga Institute), IT parks (Infocity, STPI), and most institutional headquarters are in Bhubaneswar. The 2024-25 Odisha Economic Survey notes that industry contributes 41.3% of GSVA, but this industrial activity is concentrated in a few clusters (Kalinganagar steel, Angul-Talcher coal/aluminium, Paradip petrochemicals) — none of which are in or near the secondary cities.

7.3 Higher Education That Does Not Retain Graduates

Every university in Odisha’s secondary cities — Sambalpur University, Berhampur University, North Orissa University, Fakir Mohan University — is a graduate-export institution. Students enter from the surrounding districts, receive their education, and leave. The pipeline flows one way: rural hinterland to university town to Bhubaneswar/Bangalore/Delhi.

This is not merely a quality issue (though quality varies). It is an ecosystem issue: there are no jobs in these cities for the graduates these universities produce. An engineering graduate from VSSUT Burla has no software company in Sambalpur to work for. A management graduate from IIM Sambalpur has no corporate sector in western Odisha to join. The institution exists; the receiving economy does not.

7.4 No Cultural Infrastructure

A city is not just an economic unit — it is a place where people want to live. Middle cities that work (Coimbatore, Mysore, Thiruvananthapuram) offer quality of life: theatres, cinema, restaurants, parks, nightlife, cultural events, sports facilities, libraries. Odisha’s secondary cities offer almost none of this. There are no multiplexes in Baripada, no professional theatre in Sambalpur, no art galleries in Berhampur, no live music venues in Balasore. The cultural economy is zero.

This matters because the “creative class” — the educated professionals, entrepreneurs, and knowledge workers who drive modern urban economies — choose cities based on quality of life, not just employment. A software engineer choosing between Bhubaneswar and Sambalpur isn’t just comparing salaries; they’re comparing restaurants, schools for their children, entertainment options, and social networks. Sambalpur cannot compete.

7.5 Transport Connectivity: Adequate for Transit, Not for Integration

Odisha’s secondary cities are on major railway lines and national highways. Sambalpur is a railway junction. Berhampur is on NH-16. Balasore is on both NH-16 and the Howrah-Chennai rail corridor. The connectivity exists for moving through these cities — but not for integrating them into an economic network.

What is missing: (a) frequency and speed of connections to Bhubaneswar (Sambalpur to Bhubaneswar is 300+ km by road, 5-6 hours; no rapid transit); (b) connectivity between secondary cities (Berhampur to Sambalpur requires routing through Bhubaneswar — there is no direct economic link between southern and western Odisha); (c) last-mile connectivity to the rural hinterland (district roads are often poor, making the secondary city inaccessible to the communities it should serve).

7.6 Municipal Governance: Revenue and Capacity

Odisha has 114 Urban Local Bodies (ULBs) — 5 Municipal Corporations, 48 Municipalities, and 61 Notified Area Councils. Their collective revenue capacity is minimal. India’s municipal revenue as a whole hovers at about 1% of GDP (compared to 7.4% in Brazil and 6% in South Africa). Within India, Odisha’s ULBs are among the weakest in own-source revenue generation.

The state has been transitioning from holding tax to property tax, but the new system’s rules are still under development. Over the last decade, the growth of own-source revenues for Indian ULBs has reduced and their dependence on state support has increased. The 15th Finance Commission allocated Rs 1,087 crore for Odisha’s urban local bodies in 2020-21 — for 114 ULBs, this averages less than Rs 10 crore per body.

Without own-source revenue, municipal corporations cannot plan, cannot invest, and cannot attract talent. The Sambalpur Municipal Corporation, the Brahmapur Municipal Corporation — these are governance shells, not governance engines. They administer; they do not develop.

Sources:

7.7 Water, Sewage, Solid Waste: Infrastructure Deficits

The AMRUT mission’s focus areas — water supply, sewerage/septage, storm water drainage — are themselves evidence of what is missing. These are basic infrastructure elements that functional cities should already have. The fact that a central government mission is needed to provide tap water connections and sewerage to cities that have existed for centuries tells you the depth of the infrastructure deficit.

Berhampur Municipal Corporation administers 74,720 houses, providing water and sewerage. But “providing” and “providing reliably at adequate quality” are different things. Intermittent water supply, inadequate sewage treatment, poor solid waste management, and absent storm water drainage are common across all secondary cities. These deficits directly affect quality of life and deter the educated middle class that secondary cities need to retain.

7.8 The Odisha Urbanisation Gap: By the Numbers

MetricOdishaIndiaTamil NaduGujarat
Urbanisation rate (2011)16.68%31.16%48.45%42.58%
Target urbanisation40% by 2036, 60% by 2047———
Municipal Corporations5—218
Cities > 1 million (UA)1 (Bhubaneswar-Cuttack)5334
Cities 500K-1M1 (Rourkela, barely)4353
Cities 200K-500K2 (Berhampur, Puri)—8+5+

Odisha has one of India’s lowest urbanisation rates and the most truncated urban hierarchy of any major state. The state government’s ambition to reach 40% urbanisation by 2036 (from ~17% in 2011, estimated ~27% currently) requires not just growth in Bhubaneswar but the emergence of functional secondary cities. Current trajectories make this target implausible.

Sources:

8. Comparative: Middle Cities That Work

8.1 Coimbatore (Tamil Nadu): Textile to Engineering to IT

Population: ~2.7 million (metropolitan, est. 2024) Transition sequence: Cotton textiles (1920s-1960s) —> Wet-grinding and pump manufacturing (1960s-1990s) —> Engineering and auto components (1990s-2010s) —> IT and startups (2010s-present)

Coimbatore’s story is one of cumulative economic evolution. The textile mills created an entrepreneurial class. That class diversified into engineering and pump manufacturing (Coimbatore produces 50% of India’s motors and pumps). The engineering base created a skilled workforce. The workforce attracted IT companies. Today, Coimbatore ranks as India’s 13th best startup destination (NASSCOM 2023) and is home to 50,000+ engineers graduating annually from local institutions.

What Coimbatore has that Odisha’s cities don’t:

  • Entrepreneurial culture: Generations of family businesses creating a self-reinforcing ecosystem
  • Sector diversification: Not dependent on any single industry or government
  • Education-to-employment pipeline: 50,000 engineers/year feeding directly into local industry
  • Quality of life: Pleasant climate, affordable housing, functional infrastructure
  • Post-pandemic boost: Remote workers from metros returned/relocated to Coimbatore, bringing skills and networks

Sources:

8.2 Rajkot (Gujarat): Engineering SME Cluster

Population: ~1.6 million (est. 2024) Economic model: Dense cluster of 23,000+ SMEs across 15 industrial estates in a 25-km zone

Rajkot is the proof case that middle cities can be built entirely by small and medium enterprises — no mega-anchor required. The city’s engineering and auto-ancillary industry employs 100,000+ people and generates Rs 3,000+ crore annual turnover. Products include bearings, diesel engines, watch parts, automotive components, forgings, castings, and machine tools. Diamond cutting is a secondary sector.

What Rajkot has that Odisha’s cities don’t:

  • SME density: 23,000 industrial units create a self-sustaining ecosystem where each unit is a customer and supplier to others
  • Non-technological innovation: The engineering industry used process and organisational innovations to move up the value chain
  • Administrative advantage: Became capital of Saurashtra state in 1947, expanding administrative functions and population
  • Entrepreneurial culture: The Kathiawadi business tradition of risk-taking and cluster formation

Sources:

8.3 Mysore (Karnataka): IT Second City and Heritage

Population: ~1.2 million (est. 2024) Economic model: IT (Infosys training campus, multiple IT firms) + heritage tourism + education + manufacturing

Mysore’s success as a secondary city rests on a deliberate positioning: it is India’s #1 Tier-II city for IT promotion. The government of India recognised this, and companies like Infosys, L&T Infotech, and Wipro established operations. The city combines IT employment with heritage tourism (Mysore Palace attracts 6+ million visitors/year), creating a diversified economy.

What Mysore has that Odisha’s cities don’t:

  • Heritage brand: Internationally recognised as a tourism destination
  • IT sector deliberately cultivated: Government policy + corporate investment + talent availability
  • Quality of life: Clean city awards, pleasant climate, cultural richness
  • Proximity to Bangalore: Close enough (150 km) to benefit from Bangalore’s ecosystem without competing directly

Sources:

8.4 Thiruvananthapuram (Kerala): IT, Space, and Services

Population: ~1.7 million (UA, est.) Economic model: Technopark (India’s first IT park, 12.72 million sq ft, 490+ companies, 75,000+ professionals) + ISRO/VSSC + state capital functions + tourism + education

Technopark in Thiruvananthapuram is Asia’s largest and India’s first IT park. The adjacent Technocity (500 acres) is being developed as a self-dependent satellite city expected to create 200,000 jobs. Kerala is also establishing India’s first space tech park in Thiruvananthapuram.

What Thiruvananthapuram has that Odisha’s cities don’t:

  • First-mover advantage in IT parks: Technopark established in 1990, three decades of ecosystem building
  • Research institution density: ISRO/VSSC, CSIR labs, multiple universities
  • State capital advantage: Policy proximity + administrative employment
  • Education quality: High literacy + professional education creating talent pool
  • Deliberate urban economic strategy: IT park development as a conscious city-building exercise

Sources:

8.5 Visakhapatnam (Andhra Pradesh): Multiple Anchors Creating a Real City

Population: ~2.1 million (UA, est.) GDP: $43.5 billion (2025), 10th largest city economy in India Economic model: Port (5th busiest cargo port) + Steel (VSP, 7.3 MTPA, 28,000 employees) + Navy (Eastern Naval Command HQ) + Pharma (JNPC: 2,143 acres, 104 operational companies) + IT (Rs 54 billion turnover, Google data centre investment of $6 billion) + Shipbuilding (Hindustan Shipyard, Naval Dockyard)

Visakhapatnam is the most complete counter-example to Odisha’s broken middle cities. It demonstrates that multiple anchors — each significant enough to sustain itself but none dominant enough to make the city dependent — create a resilient urban economy. Services contribute 55% of GDP, industry 35%, agriculture 10%.

What Visakhapatnam has that Odisha’s cities don’t:

  • Multiple independent anchors: No single sector accounts for more than 25% of economic activity
  • Port infrastructure: Deep-water port driving trade, logistics, and industrial location decisions
  • Defence + civilian balance: Eastern Naval Command employs thousands but the civilian economy is larger
  • Pharmaceutical cluster: JNPC demonstrates how industrial parks can create specialised urban economies
  • Scale: At 2.1 million, it has the critical mass for diversified services, entertainment, education, and healthcare

Sources:

8.6 Synthesis: What These Cities Have in Common

FeatureCoimbatoreRajkotMysoreTrivandrumVizagSambalpurBerhampurBalasore
Independent economic engineYes (textiles/engg)Yes (SME cluster)Yes (IT/tourism)Yes (IT park)Yes (port/steel/pharma)NoNoNo
Entrepreneurial cultureStrongVery strongModerateModerateModerateWeakWeakWeak
Education-to-employment pipelineStrongStrongStrongStrongStrongBrokenBrokenBroken
Quality of lifeGoodGoodVery goodGoodGoodPoorPoorPoor
Municipal capacityModerateGoodGoodGoodGoodWeakWeakWeak
Transport connectivityGoodGoodGood (to Bangalore)GoodGood (port + airport)ModerateModerateModerate
Cultural infrastructureGoodModerateVery goodGoodModeratePoorPoorVery poor

The pattern is unmistakable: functional middle cities have at least one independent economic engine, a working education-to-employment pipeline, and sufficient quality of life to retain talent. Odisha’s middle cities have none of these three essential features.

9. What Would Create Functional Middle Cities in Odisha

9.1 Economic Anchors: What Could They Be?

Each city needs a different anchor suited to its geography, existing assets, and hinterland:

Sambalpur:

  • Coal-to-chemicals: MCL’s 200+ MT coal production could seed a downstream chemicals industry (methanol, fertilizers, synthetic fuels) rather than exporting raw coal
  • Education hub: The SEARCH academic cluster (7 institutions) could be strengthened into a nationally competitive education city — if combined with startup incubation, industry-academia partnerships, and housing/lifestyle infrastructure for faculty and students
  • Sambalpuri textile upgrading: Design school + digital retail platform + brand development + export facilitation for the existing handloom economy
  • Agro-processing: Western Odisha’s agricultural output (paddy, turmeric, vegetables) processed locally rather than exported raw

Berhampur:

  • Port-linked industry: Gopalpur Port expansion (Rs 16,000-18,000 crore committed investment) could create a logistics-manufacturing corridor
  • Seafood processing: Southern Odisha’s coast produces significant marine catch; processing and export could be centred in Berhampur
  • Healthcare services: MKCG Medical College as anchor for a health-services cluster (diagnostics, pharmacy manufacturing, medical devices, health IT)
  • IT/BPO satellite: Berhampur’s location on NH-16 between Bhubaneswar and Visakhapatnam positions it for IT overflow from both cities

Balasore:

  • Defence-to-civilian technology transfer: If DRDO’s presence could be leveraged for a civilian technology park (electronics, precision engineering, testing/certification)
  • Coastal tourism: Chandipur’s unique “vanishing sea” + proximity to Kolkata could make Balasore a weekend tourism hub — if infrastructure is built
  • Food processing: Balasore district’s fertile alluvial soils and agricultural output (paddy, fisheries) could support processing industries

Baripada:

  • Ecotourism hub: Simlipal Tiger Reserve as anchor for a professional tourism ecosystem — lodges, guides, nature education, sustainable tourism enterprise
  • Tribal crafts and culture: Mayurbhanj’s tribal communities have rich craft traditions (Chhau dance, stone carving, tribal painting) that could support a cultural economy
  • Iron ore value-addition: The district’s iron ore mines (Rs 11,698 crore annual value) could seed pelletisation or beneficiation plants

9.2 Infrastructure Investment

Connectivity to Bhubaneswar and to hinterland:

  • The integrated economic corridor announced for Bhubaneswar-Cuttack-Puri-Paradip (645 km ring road network) must be extended to include spokes reaching secondary cities
  • The Gopalpur-Jeypore economic corridor proposal, if executed, could transform southern Odisha’s connectivity
  • Airport development at Berhampur (proposed at Rangeilunda) and upgrades at Jharsuguda (serving Sambalpur) are critical
  • Rail frequency and speed improvements on the Sambalpur-Bhubaneswar, Berhampur-Bhubaneswar, and Balasore-Bhubaneswar corridors

Intra-city infrastructure:

  • Reliable 24/7 water supply (currently intermittent in all secondary cities)
  • Sewerage systems (AMRUT is addressing this, but slowly)
  • Storm water drainage (flooding is a chronic problem)
  • Roads, public transport (CRUT now operational in Rourkela [100 buses], Sambalpur [25 buses], and Berhampur [20 buses] as of 2024-25; expansion planned to 10 more cities including Balasore, Baripada, Keonjhar, Jharsuguda, Angul — Survey Ch. 7 §7.4.7)
  • Digital infrastructure (broadband, data centres)

9.3 Institutional Investment

Quality education: The existing universities need not just more funding but structural reform — industry partnerships, incubation centres, international faculty exchange, research funding tied to local problem-solving. IIM Sambalpur and IISER Berhampur are national-calibre institutions; they need a local ecosystem to interact with.

Healthcare: MKCG Medical College in Berhampur and VIMSAR in Sambalpur should be upgraded and surrounded by health-services clusters. AIIMS satellite centres or super-speciality blocks could be established.

Cultural facilities: Theatres, libraries, art galleries, sports complexes, public parks. These sound like luxuries for towns struggling with basic water supply — but they are essential for attracting and retaining the educated middle class.

9.4 Governance Reform

Municipal revenue capacity: Odisha’s ULBs must develop own-source revenue through property tax reform, user charges for services, and municipal bonds. Without revenue independence, municipalities cannot plan or invest.

Urban planning capacity: Master plans, zoning, building regulations, land-use planning — most secondary cities lack these basics. The Directorate of Town Planning has 20 unit offices, but their capacity is limited. Nine AMRUT cities are getting GIS-based master plans — this needs to be universal.

Administrative decentralisation: Some state functions currently concentrated in Bhubaneswar could be decentralised to regional centres — e.g., locating regulatory bodies, state-owned enterprise headquarters, or specialised courts in secondary cities.

9.5 The Regional Development Board Concept

One structural intervention that has worked in other contexts: Regional Development Boards with dedicated mandate, budget, and authority for integrated development of a geographic zone. Western Odisha (anchored by Sambalpur), southern Odisha (anchored by Berhampur), northern Odisha (anchored by Balasore/Baripada), and the Kalinganagar-Angul industrial corridor each have distinct development needs that cannot be addressed by a one-size-fits-all approach from Bhubaneswar.

A regional board would have the authority to coordinate industrial policy, infrastructure investment, skills development, and institutional location for its zone — much like Singapore’s Economic Development Board operates at the national level, but here applied to sub-state regions. The board would be accountable for specific outcomes: employment generation, urbanisation rate, graduate retention, private investment attracted.

9.6 The Role of Private Investment and Entrepreneurship

Government cannot build cities alone. Coimbatore and Rajkot were built by entrepreneurs, not by government programmes. The question is what creates entrepreneurial ecosystems in currently non-entrepreneurial environments.

The food processing opportunity: Odisha currently processes only 0.7% of its agricultural produce — the government targets 25% by 2025. Under PMFME’s “One District One Product” (ODOP) scheme, 30 products have been identified for 30 districts. If food processing units were established in secondary cities rather than in Bhubaneswar or export-oriented SEZs, they could create the local industrial anchors these cities lack.

IT/BPO decentralisation: Post-pandemic, Tier-2 cities across India have attracted IT investment due to 25-35% lower operational costs, rising infrastructure, and talent availability. Odisha’s secondary cities could compete for this — but only if broadband infrastructure, power reliability, and quality-of-life improvements are in place.

Startup ecosystem building: IIM Sambalpur and other institutions could anchor startup incubation programmes focused on local opportunity areas — agri-tech, edu-tech, health-tech, clean energy — if supported by venture capital access and regulatory ease.

Sources:

Summary Data Tables

Table 1: Odisha’s Secondary Cities — Key Metrics

CityPop. (2011 MC/UA)Pop. Est. 2026DistrictSmart CityAMRUTKey AssetKey Deficit
Sambalpur184,000 / 335,000275K-404KSambalpurYes (proposed)YesEducation cluster (IIM, VSSUT, 7 institutions), MCL HQ, Sambalpuri textilesNo industrial anchor, brain drain, weak municipal capacity
Berhampur356,598 (MC)455K-534KGanjamNo (proposed, not selected)YesGopalpur Port, MKCG Medical, silk industry, NH-16 positionMigration paradox (700K leave Ganjam), no industry, no airport
Rourkela552,970 (UA)~700KSundargarhYes (selected)YesSteel plant (SAIL RSP), NIT RourkelaSingle-industry dependence, tribal displacement legacy
Balasore144,373~170KBalasoreYes (proposed)YesDRDO/ITR, NH-16 position, ChandipurDefence enclave doesn’t spill over, no civilian industry
Baripada116,874~140KMayurbhanjNoYesSimlipal Tiger Reserve, tribal hinterland, iron oreNo connectivity, no tourism infrastructure, no industry

Table 2: Comparative — Functional Middle Cities vs. Odisha’s Secondary Cities

FeatureCoimbatoreRajkotMysoreVizagSambalpurBerhampur
Population2.7M1.6M1.2M2.1M275K455K
Primary economic driverEngineering/ITSME clusterIT/TourismPort/Steel/PharmaGovernmentGovernment/Trade
Private sector employmentDominantDominantMajorMajorMinimalMinimal
Entrepreneurial ecosystemStrongVery strongGrowingGrowingAbsentAbsent
AirportInternationalDomesticDomesticInternationalRegional (Jharsuguda)None (proposed)
Municipal revenue capacityStrongStrongModerateStrongWeakWeak

Table 3: Odisha Urbanisation vs. Comparators

StateUrbanisation Rate (2011)No. of Cities > 500KNo. of Cities 200K-500KGSDP Per Capita (2024-25 est.)
Tamil Nadu48.45%68+~Rs 3,00,000+
Gujarat42.58%55+~Rs 2,80,000+
Karnataka38.67%34+~Rs 3,20,000+
Kerala47.72%24+~Rs 2,70,000+
Andhra Pradesh33.49%34+~Rs 2,20,000+
Odisha16.68%1 (barely 2)2Rs 1,86,761

Key Insights for Chapter 6 and Chapter 7

  1. Odisha’s urban hierarchy is not merely underdeveloped — it is structurally broken. The gap between the Bhubaneswar-Cuttack twin city and every other urban centre is too large to be bridged by incremental growth. Without deliberate intervention, the hierarchy will remain truncated.

  2. The secondary cities are administrative artifacts, not economic organisms. They exist because the British or the post-independence administration designated them as district headquarters. They have no independent economic reason to grow.

  3. The migration paradox is the sharpest diagnostic. Ganjam sends 700,000 workers to Surat while its capital city of 450,000 has no industry. The rural hinterland’s labour surplus bypasses the nearest city entirely. This means the city is functionally invisible in the economic system.

  4. Every functional middle city in India has at least one economic engine that is independent of government. Coimbatore has textiles-to-IT, Rajkot has 23,000 SMEs, Mysore has Infosys + heritage tourism, Vizag has port + steel + pharma. Odisha’s secondary cities have zero independent economic engines.

  5. Institutional assets are necessary but not sufficient. Sambalpur has an IIM, a technical university, a medical college, and India’s first academic cluster. But institutions without a receiving economy produce graduates who leave. The institution-to-employment pipeline is broken at the employment end.

  6. The Gopalpur Port expansion is the single most significant opportunity for breaking the pattern. If Rs 16,000-18,000 crore in committed investment materialises, it could create the first genuine industrial-logistics anchor outside the Bhubaneswar-Kalinganagar-Paradip corridor. But Odisha has a history of announced investments that do not materialise at committed scale.

  7. Quality of life is not a luxury — it is a prerequisite. Middle cities that retain talent (Mysore, Coimbatore, Thiruvananthapuram) offer cultural infrastructure, public spaces, reliable services. Without these, even employment opportunities cannot compete with the metropolitan pull.

  8. The AMRUT and Smart City missions address symptoms, not causes. Providing tap water and sewerage is essential but does not create an urban economy. The cause is the absence of economic engines and governance capacity.

  9. Food processing (0.7% of agricultural produce processed) and IT/BPO decentralisation are the most realistic near-term anchors for secondary cities, given Odisha’s agricultural base, post-pandemic Tier-2 city attraction, and existing government policy (ODOP scheme, Food Processing Policy 2022).

  10. The Kosali statehood movement is a symptom of the broken urban hierarchy. Western Odisha’s demand for a separate state is fundamentally a demand for a functional regional capital — a city that serves western Odisha’s economic and administrative needs instead of routing everything through coastal-dominated Bhubaneswar. If Sambalpur were a genuine regional economic centre, the political energy driving the movement would partially dissipate.

Source Index

Government and Institutional Sources

Census and Population Data

Migration Research

Comparator City Sources

Urban Theory and National Context

Specific Features

Research compiled for SeeUtkal project. All sources cited with URLs. Data tables included for Chapter 6 and Chapter 7 reference.

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