Odisha govt. tightens norms for hiring external consultants

The Odisha government has decided to restrict appointment of external consultants across various departments in a move to reduce excessive reliance on outside resources.

“It is now decided that every State government department will thoroughly assess their need of consultants and propose to the Finance Department the optimum number of consultants required to be engaged from April next year,” Chief Secretary Manoj Ahuja said issuing a memorandum on Thursday.

Various State departments traditionally engaged external consultants — either individually or through project management units and similar entities — for undertaking key policy reforms and managing projects. The stated objective behind bringing in external expertise was to foster a collaborative ecosystem that could enhance the efficiency, experience, and institutional memory of government employees.

However, following the assumption of power by the Bharatiya Janata Party (BJP) in the State, such engagements began to be viewed with suspicion. The practice came under scrutiny, with allegations that consultancy appointments were often used to favour influential individuals and channel illicit funds for either political or personal gain.

“It is seen that there is indiscreet engagement of consultants by some departments and subordinate State government organizations so much so that in-house capability of employees remains grossly underutilised and dependency on consultants becomes extremely high,” mentioned Mr. Ahuja.

The matter will be placed before a high power committee for deciding the optimum number of consultants to be engaged in the each department and its subordinate entities from April 1, 2026.

“Without prior approval of the committee, remuneration will not be paid to any consultant,” the memorandum said.

According to senior BJP leaders in the State, consultants appointed on a temporary basis were not held accountable for instances of mismanagement or governance failures. Allegations also emerged regarding financial irregularities in the spending of funds of the District Mineral Foundation, where external consultants had been engaged.