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Odisha Guidelines for Engagement of Consultants, PMUs & TSUs

Guidelines for Engagement of Consultants / PMUs / TSUs | Finance Department, Odisha

GUIDELINES FOR ENGAGEMENT OF CONSULTANTS / PMUs / TSUs

Finance Department, Government of Odisha – Office Memorandum No. 21602/F, Dated 17.08.2026

Memorandum No. 21602/F, Dated 17.08.2026

Issuing Authority Finance Department, Govt. of Odisha

Legal Framework OGFR 2023 (Chapter VI) & DFPR 1978 (Rule 12)

Effective From Date of Issue (17.08.2026)

Sunset Clause

5 Years

Maximum duration of engagement

In-House Deployment

1:1 Ratio

Minimum 1 in-house for up to 5 consultants

Consultant Tenure

5 Years Max

Continuous engagement limit

Key Provisions of the Engagement Guidelines

Sunset Clause: Every contract for engagement of external consultants, PMUs, TSUs, or similar entities shall contain a sunset clause prescribing a finite duration not exceeding five years. Continuation beyond this period is not permitted.
Non-Creation of Posts: Engagement of external consultants shall not result in the creation of any new Government posts. Such personnel shall not be engaged against existing sanctioned regular posts or assigned functions required to be performed by regular Government employees.
Leadership and Administrative Oversight: At the Department level, PMUs/TSUs shall operate under the supervision of an officer not below the rank of Special Secretary/Additional Secretary/Joint Secretary. At district and sub-district levels, they shall function under ADM/District-Level Officer/SDM/BDO as applicable.
Mandatory Deployment of In-House Personnel: To facilitate institutional learning and capacity building, regular Government employees shall be deployed alongside external consultants as per minimum staffing norms: Up to 5 consultants – minimum 2 in-house; 6 to 10 consultants – minimum 4 in-house; 11 to 15 consultants – minimum 6 in-house. These may include ASOs, SOs, Under Secretaries, or equivalent.
Exclusivity of Assignment: Government employees assigned to a PMU/TSU shall ordinarily not be entrusted with unrelated routine duties during deployment. They shall report directly to the designated officer heading the PMU/TSU. Performance appraisal (ACR/CCR/PAR) shall be initiated by the designated reporting authority supervising the PMU/TSU, with the Head of Office as accepting authority.
Tenure and Rotation Framework: No individual consultant shall be engaged continuously for more than 5 consecutive years. Upon completion, the consultant shall be replaced and not retained in the same assignment or department/agency. Administrative Departments shall adopt a phased transition strategy to progressively replace consultants with trained Government personnel.
Creation of Regular Posts: Where work handled through consultants is assessed to be recurring and permanent in character, the Administrative Department shall examine the requirement for creation of regular posts and submit a proposal to the Finance Department.
Monitoring and Review Mechanism: Monthly review by the designated supervisory officer, quarterly formal review by the Department Secretary, and compliance verification immediately after engagement to ensure in-house personnel deployment as per norms. The Chief Secretary shall periodically review compliance status.
Exclusions: Legal consultants engaged under the Law Department's SOP dated 10.06.2026 are excluded from these guidelines and shall continue to be governed by that SOP with prior concurrence of the Finance Department.
Maximum Resource Strength: Department-wise maximum resource strength is indicated in Annexure-A, including Commerce & Transport (10), Health & FW (77), Works (5), GA & PG (Vigilance) (37), Planning (20), Skill Development & TE (20), Tourism (14), Revenue & DM (5), and others.

In-House Personnel Deployment Norms

Sl. No.	Number of External Consultants Engaged	Minimum Number of In-House Personnel
1	Up to 5	2
2	More than 5 and up to 10	4
3	More than 10 and up to 15	6

In-house personnel may include Assistant Section Officers (ASOs), Section Officers (SOs), Under Secretaries, or equivalent officers/employees.

Maximum Resource Strength – Department-wise (Annexure-A)

Sl. No.	Department	Maximum Resource Strength
1	Commerce & Transport Department	10
2	Health and FW Department	77
3	Works Department	5
4	Food Supplies & Consumer Welfare Department	2
5	GA & PG Department (Vigilance Organization)	37
6	Planning & Convergence Department	20
7	Skill Development & TE Department	20
8	Sports & Youth Services Department	5
9	Energy Department	5
10	Tourism Department	14
11	Revenue & DM Department	5
12	Steel & Mines Department	2

Important Points to Note

Sunset Clause: All consultant/PMU/TSU engagements shall have a maximum duration of 5 years. No extension beyond this period is permitted.
In-House Personnel Mandate: For every engagement, regular Government employees must be deployed alongside consultants to ensure knowledge transfer and capacity building.
Staffing Ratio: Minimum in-house personnel required: 2 for up to 5 consultants, 4 for 6-10 consultants, and 6 for 11-15 consultants.
Consultant Tenure: Individual consultants cannot be engaged for more than 5 consecutive years in the same assignment or department.
Performance Assessment: ACR/CCR/PAR of in-house personnel deployed with PMU/TSU shall be initiated by the PMU/TSU supervising officer.
No Post Creation: Engagement of consultants shall not lead to creation of new Government posts or filling of sanctioned regular posts.
Permanent Functions: Where work is recurring/permanent in nature, Departments shall propose creation of regular posts to Finance Department.
Monitoring: Monthly reviews by supervisory officers, quarterly reviews by Department Secretaries, and compliance verification by the Chief Secretary.
Exclusion: Legal consultants engaged under Law Department's SOP are excluded and governed separately with Finance Department concurrence.
Effective Date: These guidelines are effective from the date of issue – 17th August 2026.

Standard operating Procedure (soP) issued by the Law Depaftment dated 10h June 2026 regarding the establishment of Legal Cells

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Click here to see Standard operating Procedure (soP) issued by the Law Depaftment dated 10h June 2026 regarding the establishment of Legal Cells

Click here to view Odisha General Financial Rules (OGFR), 2023

Frequently Asked Questions

What is the maximum duration for engaging consultants/PMUs/TSUs?

Every contract for engagement of external consultants, PMUs, TSUs, or similar entities shall have a sunset clause prescribing a finite duration not exceeding five years. Continuation beyond this period is not permitted.

What is the mandatory in-house personnel deployment ratio?

For up to 5 external consultants, minimum 2 in-house personnel; for 6 to 10 consultants, minimum 4 in-house; for 11 to 15 consultants, minimum 6 in-house. These may include ASOs, SOs, Under Secretaries, or equivalent officers.

What is the maximum tenure for an individual consultant?

No individual consultant shall be engaged continuously for a period exceeding 5 consecutive years. Upon completion, the consultant shall be replaced and shall not be retained in the same assignment or department/agency.

How will performance of in-house personnel deployed with PMU/TSU be assessed?

The Annual Confidential Report (ACR)/Confidential Character Roll (CCR)/Performance Appraisal Report (PAR) of such personnel shall be initiated by the designated reporting authority supervising the PMU/TSU, with the Head of Office serving as the accepting authority.

What happens if the work is permanent in nature?

Where the nature of work handled through consultants, PMUs, TSUs, or similar entities is assessed to be recurring and permanent in character, the Administrative Department shall examine the requirement for creation of regular posts and submit a proposal to the Finance Department.

What is the monitoring and review mechanism?

Monthly review by the designated supervisory officer, quarterly formal review by the Department Secretary, and compliance verification immediately after engagement. The Chief Secretary shall periodically review the status of compliance and institutional capacity-building measures across Administrative Departments.

Are legal consultants covered under these guidelines?

No. Legal consultants engaged under the SOP issued by the Law Department dated 10th June 2026 are excluded from the scope of these guidelines and shall continue to be governed by that SOP with prior concurrence of the Finance Department.

What is the maximum resource strength for departments?

The maximum resource strength is specified in Annexure-A. Examples: Health & FW (77), GA & PG (Vigilance) (37), Planning (20), Skill Development (20), Tourism (14), Commerce & Transport (10), Works (5), Revenue & DM (5), Energy (5), Sports (5), Food Supplies (2), Steel & Mines (2).

When do these guidelines come into effect?

These guidelines shall be effective from the date of issue, i.e., 17th August 2026.

What is the legal framework for these guidelines?

These guidelines are issued in accordance with the provisions of Chapter VI of the Odisha General Financial Rules (OGFR), 2023, read with Rule 12 of the Delegation of Financial Powers Rules (DFPR), 1978.