In Odisha, a Notified Area Council (NAC)—also known as a nagar panchayat elsewhere—is an urban local body designated for areas transitioning from rural to urban. Here’s how the eligibility criteria to constitute an NAC in Odisha work:
Population Threshold
According to the Odisha Municipal Act, 1950, a “transitional area” (i.e., NAC) is defined primarily based on population. Specifically, it generally applies to areas with:
- At least 10,000 inhabitants
- Generally less than 25,000, though the exact upper limit may vary depending on classification for municipalities and corporations Urban Odisha.
More broadly, per state-level classification:
- Notified Area Councils are established in urban centers with more than 12,000 and less than 40,000 inhabitants Wikipedia+1.
Additional Criteria Beyond Population
The law also empowers selection of NACs based on multiple factors beyond just population. These include:
- Population density
- Revenue generation potential for local administration
- Percentage of employment in non-agricultural activities (i.e., shift toward urban occupations)
- Economic importance of the area (e.g., strategic location, commercial viability) The New Indian Express.
Thus, an area might qualify even if it’s near—but slightly below—the population threshold, provided these other urbanization indicators are strong.
Process for Formation
The formal process typically includes:
- Issuance of a draft notification by the Housing & Urban Development Department.
- Stakeholder input—local residents are invited to submit objections or suggestions, usually within a defined timeframe (e.g., 30 days) The New Indian Express.
- Final notification and official constitution of the NAC.
This reflects the government’s effort to include local feedback before formalizing urban bodies.
Real-World Example: Borigumma Conflict
A recent case highlights these criteria in action: Borigumma panchayat in Koraput, with an estimated population around 25,000, held a dawn-to-dusk bandh (shutdown) in August 2025. The protestors claimed Borigumma meets the necessary conditions for NAC status—yet was excluded from the most recent list of proposed NACs. Local leaders reported the matter is under consideration The Times of India.
Summary Table
| Criterion | Details |
|---|---|
| Population | Generally between ~12,000 and ~40,000 inhabitants |
| Urban characteristics | Density, non-agricultural employment, economic activity |
| Legal framework | Odisha Municipal Act, 1950 and related notifications |
| Process | Draft notification → stakeholder feedback → final formation |
TL;DR
To qualify as a Notified Area Council (NAC) in Odisha:
- It should have a population roughly between 12,000 and 40,000 (or 10,000–25,000 per legal framing).
- It should exhibit urban traits: dense settlement, rising non-farm jobs, revenue potential, and economic importance.
- Formation is through a formal notification process with local consultation.
Panikoili’s Rise: Why It Became a Notified Area Council in Jajpur
1. The Backdrop: Panikoili At a Glance
- Geographical Importance: Located at the crossroads of National Highway 16 and National Highway 20, Panikoili serves as a vital transit hub in Jajpur district Wikipedia.
- Population & Administrative Role: With a population around 10,000, it foundationally qualifies as a NAC Wikipedia. It is also the locus of police administration for the district WikipediaRTI Odisha.
- Town Profile: Identified administratively as a “town” governed by the Panikoili NAC Wikipedia.
2. NAC Status: A Strategic Upgrade
- What Is an NAC? A Notified Area Council is an urban local body intended for areas transitioning from rural governance structures to urban administrative framework.
- Why Panikoili? In February 2024, Panikoili—alongside Binjharpur, Jarka, and Chandikhole in Jajpur—was designated as a new NAC. This decision was rooted in population growth, urbanization trends, and local aspirations for improved civic administration The Times of IndiaThe New Indian ExpressHindustan Times.
3. The Strategic Advantages of NAC Status
- Better Governance: NAC formation empowers Panikoili with its own civic body, enabling local-level decision-making, budgeting, and development planning.
- Urban Development Opportunities: With NAC status often comes better infrastructure—improved roads, sanitation, drainage, and public amenities.
- Civic Voice and Visibility: Residents gain a stronger forum to raise grievances, propose projects, and influence development prioritization.
4. What’s Next: Vision & Potential
- Enhanced Infrastructure: Expect upgrades in transport facilities, drainage systems, public spaces, and street lighting.
- Investment Magnet: The intersection of two national highways positions Panikoili for commercial growth—think logistics, hospitality, retail, and service sectors.
- Community Engagement Boost: As a formal urban body, the NAC can foster more participatory governance, budget inputs, and local-level innovation.