"Odisha Chief Minister Naveen Patnaik has approved 225 million rupees [$2.7 million] for the first stage of the colony's development in [the village of] Bagapatia, which will be a part of the state's initiative," a spokesperson of Patnaik's office was quoted by the newspaper as saying.
The funding is intended for building houses, electricity connections, roads and other facilities for those who had lost their homes due to coastal erosion in the currently flooded village of Satabhaya, the report said.
Coastal erosion occurs because of a displacement or loss of land due to rising sea levels, resulting in strong waves and coastal flooding. The erosion affects the communities that live along the coast and endangers biodiversity and flora and fauna in the areas under the risk of erosion.
From 1990-2018, over a third of India's 4,290-mile coastline was damaged by erosion, with the state of West Bengal being the most affected, according to the Indian Centre for Science and Environment. Rising frequency of cyclones, anthropogenic activities such as construction of harbors, dams and beach mining are among the reasons for the erosion.