The Institute Of Physics, Bhubaneswar is an autonomous research institution funded jointly by the Department Of Atomic Energy (DAE) and the Government of Odisha. The Institute was officially established in 1972 by the Government of Orissa, and registered in 1972 as a registered society under societies Registration Act 1860. The Institute started functioning under the directorship of Prof. T. Pradhan on September 4, 1974 in two rented rooms of the Utkal University Guest House. After a few months, the Institute moved to a rented house in Sahid Nagar, Bhubaneswar, where its academic activities got started in January 1975 with two faculty besides the then Director, Prof. T. Pradhan. From 1974 to 1981, the Institute functioned in rented buildings and moved to its present campus in 1981. On March 25,1985, the Institute was taken up by the Department of Atomic Energy.
The management of affairs of the Institute is vested in a Governing Council consisting of an eminent Scientist nominated as its Chairman, the Director of the Institute and members nominated by the Department of Atomic Energy (DAE) and the Government of Orissa. The Registrar of the Institute functions as its Secretary. The Institute receives major part of its financial support from the Department of Atomic Energy, Government of India, and a token support from the Government of Orissa. The Institute also receives funds from other government agencies (like CSIR and U.G.C) to finance specific research projects.