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Urban livelihoods in Odisha

Overview

During the COVID-19 pandemic, the state government of Odisha launched a pioneering urban employment scheme, MUKTA. Based on a bottom-up approach, MUKTA provided wage labor to vulnerable workers to execute public works projects that were sustainable, climate resilient, and responsive to local demands.

However, payment delays were a key challenge that undermined the scheme. For instance, in two urban local bodies (ULBs), it was found that more than 50% of completed tasks were not processed for payment, while the rest encountered month-long delays. These delays stemmed from cumbersome, paper-based processes.

Our impact

Urban livelihoods

Our smart payments reform for Odisha’s urban livelihoods program, MUKTA, led to:

60%

Reduction in payment delays to beneficiaries.

30%

Reduction in the number of approvals

0

Idle funds sitting in bank accounts

Solution

Following an extensive diagnostic exercise, MSC developed a digital payment solution that would promote efficiency and accountability. This reform involved two parts. One was a digital workflow management system known as MUKTASoft, that streamlined coordination on public works among self-help groups, local government bodies, and state government departments. The second was a “Just-in-Time” payment mechanism, in which funds would be pulled for immediate disbursal once project milestones were achieved.