Odisha Ends Pension Quota System, Expands MBPY Coverage to 4.18 Million

Odisha has removed the quota restrictions under its Madhu Babu Pension Yojana (MBPY), allowing more eligible people to receive social security assistance, as per Business Standard news report.  

The state has added 505,817 beneficiaries under the scheme, taking the total number of pension recipients to 4.18 million from around 3.67 million. 

Chief Minister Mohan Charan Majhi announced the decision at a state-level programme in Baleshwar on Tuesday (November 10, 2026). The expansion will increase the government's annual expenditure by ₹625 crore. 

Existing Quota System Discontinued 

Until now, the number of pension recipients was restricted by fixed quotas at the state and district levels. Even applicants who met the eligibility criteria could not be enrolled unless a vacancy arose following the death or exit of an existing beneficiary. 

The arrangement left many elderly people, widows, persons with disabilities and destitute individuals waiting for financial assistance. Some applicants remained on waiting lists for years. With the quota system discontinued, enrolment will no longer depend on vacancies in the existing beneficiary list. 

Majhi said the government had allocated additional funds to extend pension coverage rather than make eligible senior citizens wait for assistance. The decision follows the commitment made in the state's 2026-27 Budget. 

Pension Applications Awaiting Approval 

Figures presented in the Odisha Assembly showed that 728,729 applications for social security pensions were pending. MBPY accounted for 711,123 applications, while another 17,606 were under the National Social Assistance Programme (NSAP).  

Ganjam had the highest number of pending applications, followed by Mayurbhanj, Kataka and Baleshwar. 

Introduced in 2008, MBPY covers elderly people, widows and persons with disabilities. Monthly pension assistance ranges from ₹1,000 to ₹1,200. Since January 2025, beneficiaries aged 80 and above and persons with disabilities exceeding 80% have been receiving ₹3,500 per month. 

New Portal for Pension Services 

The state also launched the Unified Pension Management Portal (UPMP) for pension applications, verification and disbursement. Applicants can use the portal or submit applications through Jan Seva Kendras and Block Development Officer offices. 

Under the revised rules, beneficiaries will automatically qualify for the ₹3,500 pension upon turning 80, without filing another application. 

Read More: NTPC, IOCL Among Central PSUs Committing ₹2 Trillion to Uttar Pradesh's Energy Sector! 

Conclusion  

With the quota system discontinued, pension enrolment will no longer depend on vacancies in the existing beneficiary list. The revised arrangement also includes a new portal for applications and pension disbursement. 

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