Bhilai was a small village and a part of the
Haihaiyavansi Kingdom until 1740 when it was conquered by the
Marathas. The foundation of the modern city of Bhilai was laid in 1955 when the Indian government signed a historic agreement with the
Soviet Union in
Magnitogorsk to establish a steel plant near the village. The first blast furnace of the plant was commissioned in 1959 by the first president of India,
Dr. Rajendra Prasad.
Urban administration and governance Pre-1973: Before the establishment of the Special Area Development Authority in 1973, civic administration and urban services in Bhilai were largely associated with the
Bhilai Steel Plant (BSP), which developed and maintained the township as an industrial town. Independent municipal governance structures were not formally constituted during this period.
1973–1998 (SADA period): In 1973, the Special Area Development Authority (SADA) was established to separate urban governance from the administrative control of BSP. An agreement concluded in 1977 defined the jurisdictional boundaries and taxation powers of SADA. Subsequently, in 1978, BSP transferred approximately 1,920 acres of land to SADA to facilitate municipal administration and planned urban development.
1998–present (Municipal Corporation): In 1998, Bhilai was constituted as a Municipal Corporation in accordance with the provisions of the 74th Constitutional Amendment to the Constitution of India. All administrative functions, assets, and responsibilities of SADA were transferred to an elected urban local body. This marked a significant transition from company-managed administration to democratic municipal governance. As per the
Ministry of Housing and Urban Affairs, the Bhilai Municipal Corporation reported a revenue of ₹237 crore (US$28 million) and an expenditure of ₹162 crore (US$19 million) in 2022–23. Taxes contributed to 25.7% of the revenue, while the corporation received ₹70 crore in grants during the year. == Demographics ==