The state government will develop rental housing within projects for economically weaker section households across urban centres to curb slum growth, Housing and Urban Development (H&UD) minister Krushna Chandra Mahapatra said. The initiative will be implemented under Pradhan Mantri Awas Yojana (Urban) 2.0 (PMAY-U 2.0). The draft Urban Area Rent Control Act, 2026 is intended to encourage rental housing while protecting landlords and tenants from exploitation. The legislation aims to ensure affordable rental accommodation for those unable to secure city housing.

Migration to Bhubaneswar and other major urban centres, combined with difficulty finding suitable rented accommodation, has driven a rise in urban slums. The state capital alone has nearly 450 slums. The minister said the proposed rent control law together with the rental housing initiative under PMAY-U 2.0 will provide relief and help check slum expansion. Rental housing projects will be developed across urban areas to meet growing demand for affordable accommodation.

As part of the initiative, vacant buildings and structures will be identified and brought into the rental housing framework. Department sources said the state last month announced the A Roof for All initiative to provide housing coverage to 80 per cent of the urban population by 2036. The programme will adopt a structured three-tier approach for economically weaker sections, low-income groups and a rental housing model for migrant and floating populations. The initiative will begin in Rourkela and expand in phases.

To expedite implementation, district collectors have been directed to identify and allocate suitable land on priority so projects can commence without delay. Officials will co-ordinate with urban local bodies to fast-track approvals and integrate rental housing into existing EWS schemes. The combined legal and programme measures are intended to increase the supply of affordable rented homes and reduce pressure on informal settlements. The state expects that targeted delivery will improve living conditions and urban resilience.