Sambalpur is the fourth largest city in the Indian State of Odisha. It is located on the banks of river Mahanadi, with a population of 335,761…Sambalpur is the fourth largest city in the Indian State of Odisha. It is located on the banks of river Mahanadi, with a population of 335,761. Prehistoric settlements have been recorded there. It is the home of the Sambalpuri sari.