In the year 1950 some new departments called Agriculture and Forestry were created. The Labour branch was separated from Commerce Department and Local Self Govt. Department was also separated from Health Department. Thus Local Self Govt. Department became an independent department. Planning and Reconstruction Department hat was just created after the 2nd World War to look after postwar planning was re-designated as Planning Department in the year 1950.

     The year 1956 experienced some major changes in Secretariat administration. A major department called Political and Services Department was created to handle affairs of New Capital, Community Development and Gram Panchayats among others. In the year 1962 Political and Services department was re-designated as Planning & Co-ordination Department Vide Notification No.8832-RB-7/62/Gen. Dt.12.7.1962. Community Development and Panchayati Raj Department, (CD) thus, became an independent department on July 11th 1962. At the beginning, the department had 2 branches i.e. (i) Community Development and Panchayati Raj and (ii) Gram Panchayats. The Social Welfare Branch was included in the department w.e.f 8th December, 1975 and the department was renamed as Community Development and Social Welfare Department.

      Thus Secretariat administration was geared up in 1980 with creation of some new departments. Political and Services Department and Community development and Social Welfare Department were renamed as General Administration Department and Community development and Rural Reconstruction Department in the 90s the latter was again renamed as Panchayati Raj Department.

     In 1994, Women and Child Development Department was created being a bifurcation from Panchayati Raj Department.

     Panchayati Raj Department had two composite directorates i.e. Director, Special Projects and Director, Gram Panchayat. Director GP was also Examiner of Local Accounts as per section 100 of Odisha Gram Panchayat Act of 1964. This has since been amended by act of Assembly in December 2003 after separation of audit from Panchayat Raj department to Finance Department under the directorate of Local Fund Audit as Statutory Authority to conduct financial audit of local bodies viz Panchayat Samiti and gram Panchayats. The directorate of Special projects was strengthened to monitor District Rural Development Agencies for implementation of poverty eradication programmes like IRDP, ERRP, NREP, RLEGP, TRYSEM, DWCRA, IAY, JRY, EAS, JGSY, SGRY and SGSY.

     Various training institution handled the capacity building efforts of this department till State Institute of Rural development was established in the year 1964. In the Seventh Plan Period 3 more extension training Centres were added at Keonjhar, Kalahandi and Bhubaneswar.

     Similarly Odisha Rural Development and Marketing Society (ORMAS) an autonomous body under Panchayati Raj Department was constituted under Society Registration Act of 1960 in the year 1991. ORMAS aims at facilitating sustainable livelihood for rural producers through marketing support. 

     To-day out of 39 departments Panchayati Raj Department has the distinction of being one among the oldest departments. At present 3 tiers Panchayati raj institutions have been introduced which has vastly added to its efficiency. Hence, it can be said, that the panchayati Raj Department is an example of change with continuity.

Panchayati Raj Institutions:

     Before coming into force of the Constitution of India during 1950, initiatives were made in Odisha for introduction of Panchayats.
    
   The details are mentioned below:

     The Odisha Gram Panchayat Act, 1948 is the first legislation prescribing constitution, power and functioning of Grama Panchayats in the State of Odisha. Provisions of the Act were to be extended to different areas of the State from time to time and could be withdrawn where necessary, as circumstances may warrant. It was assumed that successful functioning of Panchayats at selected cases would serve as examples to the surrounding villages, which might prompted to demand establishment of Grama Panchayats. This experiment however did not succeed because in many villages people were misled by the propaganda that in the Panchayat areas people had to pay some additional taxes, fees etc. to the Panchayats without getting appreciable amenities in lieu thereof. Govrnment, therefore, adopted a scheme of establishing Panchayat covering an entire district or a sub-division w.e.f year 1952-53. The provision of permitting withdrawal of Panchayat from certain areas was deleted by the Odisha Grama Panchayats (2nd amendment) Act, 1957.