Paradeep Municipality was earlier Paradeep Notified Area Council, constituted vide H.&U.D. Department Notification No. 31169/HUD, dt. 27.09.1979 and actually started functioning with effect from 18.9.1980. Subsequently this N.A.C. was upgraded to Municipality under section 424 of Orissa Municipal Act, 1950 vide H & U D Department Notification No. 47302/HUD dt. 12.12.2002. This Municipality comprises of only five Revenue villages namely :
Udayachandrapur
Chauliapalanda
Sandhakud
Bijayachandrapur
Bhitargarh
Its area has been extended to 32.40 square Kilometers after merger of PPL with the Municipality. This Municipality has been divided into 19 wards having 1314 nos. of holdings.