The new township, Berhampur North City, will be set up near Sitalapalli on the outskirts of Berhampur. The state-level empowered committee, headed by chief secretary A P Padhi, approved the project in principle recently, official sources said.
The township would be developed in public, private partnership (PPP) mode on 101 acres. Around 10,000 residential houses will be constructed to accommodate 40,000 people.
The Berhampur Development Authority, the implementing agency of the project, will apply for tranfer of the the land, which is possessed by revenue department, in its favour, the sources said.