The picturesque of the modern twin cities of Rourkela and Fertilizer Township as well as their developed peripheral areas not only make people bewitching but also wonder them to know that most of the areas were once surrounded by dense forests.

According to the census report of 2001 the population of Rourkela is 4,84,292. But the number of population as per the census record of 1921 was only 382

The then railway station of Rourkela was within the revenue village of Mahulpali. There was a very small village towards the southeast corner of Mahulpali within a distance of about two kilometres called Rourkela. The literary meaning of ‘Rourkela’ according to the language of ‘Sadri’ is your home. It is also learnt that a tribal community called ‘Raulia’ had been living at the village since time immemorial. They were experts in tantrick. According to their ancestral occupation the village was known as Rourkela. The present name of Rourkela is the outcome of the ancient tribal village of Rourkela.

The B.N.R. Company (Bengal-Nagpur Railway Company) constructed the Howrah Nagpur railways, which ran through Rourkela and some merchants, started settling at Rourkela with business motives, around the village Rourkela and the Railway station was named after the village Rourkela. The erstwhile revenue village of Rourkela is now popularly known as old Rourkela. 

The habituated area around the railway station of  Rourkela was declared as an urban town in the year 1931. The census report of 1931 reveals that the number of population was 493. By the time a primary school, an office of the forester, a sub-post office, some tea stalls, restaurants some shops of liquor and opium were there around the station area. Gradually a train line was connected to Birmitrapur and Rourkela could avail a status of a junction and the number of railway employees also started increasing. 

There was another station at the village Panposh which is about 10 Kilometres away from Rourkela. The population of Panposh by 1931 was 2,252 almost five times than that of Rourkela.

There was a village called Durgapur in between Rourkela and Panposh stations. The construction of the sub-divisional court building was started in 1945 at the village Durgapur, the present Uditnagar. As a result, the two railway stations of Panposh and Rourkela got famous.

India got her independence. Pundit Jawaharlal Nehru, the first Prime Minister of India wanted to make India an industrialised state. Iron and Steel was the basic requirements of the people at the dawn of the independence. The then leaders wanted to set up a steel plant to make India self-dependent in iron and steel. A feasible spot for steel plant was searched in different states like West Bengal, Bihar, Orissa and Madhya Pradesh.  Finally the leaders of the nation selected Rourkela for a steel plant. It was considered as the best place for steel plant in spite of being a hilly area and surrounded by dense forest.

Survey for the steel plant at Rourkela was started in 1952 and the Got. Of Orissa issued a gazette notification on 16^th February 1954. In accordance with the notification the Govt. of Orissa acquired an area of about 80 square miles around Rourkela for the purpose of Steel Plant.

A Germany private undertaking called KRUPP  and DEMAG  Co. came forward to provide financial and technical help for the proposed steel plant at Rourkela. The technical experts of the company advised the Govt. of India as well as the Govt. of Orissa for acquiring more amount of land and attempt was made to fulfil their suggestions. As a result a further area of 32 square kilometres was acquired out of thirty-one revenue villages. Almost 13,000 people compromising 2,424 families had to loose their dwelling sides. Later further 11,000 acres of land was acquired out of thirty-one revenue villages for the construction of Mandira Dam. Still further land was acquired for the purpose of constructing railway lines to Hatia and Barsuan. Construction of Bondamunda Railway junction required further acquisition of land as a matter of fact further 20,000 people had to leave their homestead land. 

Rourkela Steel Plant, Fertilizer Plant, Fertilizer Township, Steel Township and different sectors were constructed on the areas so acquired by the Govt. of Orissa.  A Marshalling yard and a railway junction were established at Bondamunda over the land acquired by the Govt.

The people who lost their home stead land and native places were resettled in resettlement localities like Jalda, Jhirpani and Bondamunda. The Govt. land beyond the river Koel was distributed among the people who lost their land for the purpose of steel plant. Thousands of technical personnel from West Germany came to Rourkela to extend their technical assistance. Different companies all over the country with contractors and labourers flocked to Rourkela and were engages in constructing the steel plant. Consequently there arose a rush of workers and business community.

The number of population according to the 1981 census was 3,22,510. By the turn of 1991, the number of population rose to 3,98,864. Such is the history of Modern City of Rourkela.