About 2,685 houses would be constructed under the Rajiv Awas Yojana for which the Centre would provide 70 per cent, while 20 per cent would be borne by the state government and the rest by the beneficiaries, official sources said.
The project was expected to be completed in the next one- and-a-half years, they said.
"The project is aimed at making Berhampur a slum-free town," said the state's Housing and Urban Development Minister Puspendra Singhdeo.
During his day-long visit, Patnaik also inaugurated a 20-bedded separate eye ward in the city hospital here, a new revenue inspection bungalow (IB), piped water supply near revenue IB and laid foundation stone for piped water supply project at the tourist resort Gopalpur-on-Sea.
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The Chief Minister also inaugurated 47 houses constructed
under World Bank-funded Odisha Disaster Recovery Project (ODRP) at Narayanpur near Gopalpur.
The government has decided to construct pucca houses with infrastructure facilities in all villages located within five kms from the sea coast under the World Bank scheme after several houses were damaged due to Cyclone Phailin which hit the state on October 12, 2013.