"The long-standing demand of the people of Ganjam has been fulfilled," said state's Higher Education Minister Pradeep Kumar Panigrahi.
He said 200 acre of land required for this purpose could be easily acquired as land was available near Berhampur and Gopalpur.
The residents of Ganjam district were demanding IIM in Berhampur town while the state government preferred to build it at Sambalpur. They were also seeking inclusion of the region in the 'Smart City' project.
"They were disappointed when Sambalpur was recommended for IIM. We are happy to have IISER," said Berhampur MLA R C Chyaupatnaik.
Classes at the premier centrally-funded institute for basic sciences would start from the 2016-17 academic year.
Union Finance Minister Arun Jaitley had announced establishment of IISERs in Odisha and Nagaland.
At present, there are five IISERs under the Ministry of Human Resource Development. These are located in Bhopal, Mohali, Pune, Kolkata and Thiruvanantapuram.
