Paralakhemundi is an ancient town and a municipality in Gajapati district in the Indian state of Odisha. Majority of the people in the town speak Odia . The town and the District share its boundaries with Andhra Pradesh. Pathapatnam town in the Srikakulam District of Andhra Pradesh is considered as twin town to due to its close proximity. Both towns are separated by the River Mahendra Tanaya. Paralakhemundi is an ancient Zamindari lying in the western corner of the southern portion of then larger Ganjam district (now constitute Ganjam district, Gajapati district, Srikakulam district and parts of Vizianagaram district), and it is bounded in the west by the district of then larger Vizagapatam district (now constitute Visakhapatnam district, Koraput district, Malkangiri district, Rayagada district, parts of Vizianagaram district) and on the north by the Jeypore state and the eastern ghats which are called Maliyas or tribal agencies. The town of Paralakhemundi is: "a straggling town in plan much like the letter ‘L’ scattered around the foot of the well wooded hill which is the distinctive feature of the place. The horizontal portion of the ‘L’ faces south, and at the corner where the ‘L’ and the vertical portion join, is situated the palace(Gajapati Palace), a most picturesque group of building". This group of buildings was designed and built by Mr. Chisholm. The Kimedi country, consisting of Parlakemedi, Pedda kimedi and Chinna Kimedi, was under a single ruler till 1607. Parlakimedi came under British influence in 1768. Paralakhemundi owes much of its present-day Existence to Sri Krushna Chandra Gajapati Narayan Deo. Krushna Chandra Gajapati Narayan Deo, Maharaja of Paralakhemundi of the Gajapati Dynasty, was the direct descendant of the historic dynasty of the Eastern Ganga dynasty Gajapati kings that ruled Odisha for more than seven centuries. During the regime of these kings, the boundaries of the dynasty was extended from the Ganges in the North to Udayagiri, Nellore district in the South. Kolahomee, one of the sons of Gajapati Kapilendra Dev, the Gajapati monarch in the later half of the 15th Century came to this part of Paralakhemundi (then in Ganjam district) and founded the Royal family of Paralakhemundi. Gajapati district has been named after Maharaja Sri Krushna Chandra Gajapati Narayan Dev, the Raja Sahib of Paralakhemundi estate. He was honoured as the 1st Prime Minister of the State of Odisha after it was created on 1 April, 1936, remembered for his contribution in the formation of a separate Odisha State and inclusion of Paralakhemundi estate in Odisha. Gajapati district came into being with effect from 2 October, 1992. Prior to this it was a part (Sub-Division) of Ganjam district. Paralakhemundi is connected to other parts of Odisha by the State Highway 4 (SH-4) which connects Berhampur at one end and Rayagada on the other. The major towns around Paralakhemundi are, Gunpur 55 km, Rayagada 128 km, Brahmapur 112 km, Palasa 43 km, Srikakulam 68 km, Visakhapatnam 174 km. The state capital Bhubaneswar is about 280 km from the town and the High Court at Cuttack is about 305 km. The nearest National Highway (NH-5) is at around 40 km from Paralakhemundi, which can be reached at Narasanapeta or Palasa or Tekkali. Due to its geographical location as a town in the border area of two states Odisha and Andhra Pradesh, Roadways has long been in the neglect and hence is a little difficult to reach the town from the nearby towns and cities. The OSRTC (Odisha State Road Transport Corporation), APSRTC (Andhra Pradesh State Road Transport Corporation), and private buses connect the town to other parts of Odisha and nearby towns of Andhra Pradesh. The town is well connected to Bhubaneswar, Brahmapur, Rayagada, Jeypore, Gunupur, Visakhapatnam, Srikakulam, Palasa, Bhawanipatna, Nabrangpur, Cuttack, Vijayanagaram, Rourkela, etc. by road.

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