The birth of the Indian Institute of Technology, Bhubaneswar, came on the 60th anniversary of the country’s Independence on 15 August 2007 when Dr Manmohan Singh, Prime Minister of India, made the announcement about the expansion of IIT system in the country. Further, the National Development Council of the Planning Commission, in its 54th meeting held on 19 December 2007, approved the proposal as part of the approval process of the 11th Five Year Plan.
The permanent IIT campus is being set up in Aragul, on the outskirts of Bhubaneswar. The site near Jatni Railway Station on the East Coast Railway is 25 kilometres from Biju Patnaik Airport
Bhubaneswar. The land is picturesque with Barunai Hill on one side and a reserve forest nearby. A total of 935 acres (3.78 km2) of land has been allocated towards the self contained campus for 10,000 students and 1,100 faculty. A science park is being set up as a part of this institution to support industry oriented research activities. The institute is expected to start operating in its new campus at Aragul by the end of 2013. The campus construction began on 14 August 2011, Chief minister Naveen Patnaik inaugurated the IIT campus construction at Aragul village near Jatni.
Several other universities and research institutions are either present or being established in the vicinity, including NISER, XIMB, IIIT, one of the Indian government's proposed National Universities of international calibre, an AIIMS-like medical institution, and the Institute of Physics. NISER's campus is 2 km away from the IIT. Other institutions, such as Sri Sri University as well as the world's biggest academic institution, Vedanta University, will be in the neighboring places of Cuttack
respectively. An advantage of this IIT is its location at Bhubaneswar, an emerging education hub, that is being promoted as an Information Technology Investment Region (ITIR) by the government.
state government is constructing a four-lane expressway directly from the National Highway No. 5 (a part of the Golden Quadrilateral) to this new IIT for increased connectivity. Khurda Rd railway station is 4 km away from the campus, and the Biju Patnaik airport is 25 km away. A new international airport is being constructed even closer to the IIT campus at a distance of 12 km. Thus, IIT Bhubaneswar is the best connected between all the upcoming IITs, and better than some existing ones.
Other advantages of IIT Bhubaneswar include the presence of major steel, power, petrochemical, and other heavy industries, major ports including the one at Paradip, as well as the emergence of Bhubaneswar as one of the IT hubs of the nation. Major tourist attractions include the Konark
temple, Puri sea beach, Chilka lagoon, gorges, a waterfalls.