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Consequent upon the declaration of Paradip as a census town in 1971 and its subsequent growth, the Paradip-Jagatsingpur Regional Improvement Trust (PJRIT) was set up by the Government of Orissa extending provisions of the OTP & IT Act, 1956.

A Master Plan for a proposed civil township was prepared by the Directorate of Town Planning, Orissa covering 42 revenue villages surrounding the census town (now 43, after creation of Chunabelari from Paradipgarh). This Master Plan was finalised in 1987. Thereafter, 77 new villages were included in the Master Plan area in three different phases (Phase 1- 70 nos, Phase 2 – 2 nos and Phase 3 – 5nos).

Subsequently, based on the potential and growth trend of the area, the State Government upgraded the PJRIT to Paradip Development Authority (PDA) in their Notification No. 25950/ HUD, dated the 7th Nov 2005.