The Institute of Physics (IOP) was founded by Government of Orissa in 1972 for conducting the atomic and nuclear research. The institute was jointly funded by Department of Atomic Energy (DAE) and Government of Orissa. On March 25 1985 the institute was finally taken up by Department of Atomic Energy (DAE). Besides getting financial support from Government of India the institute also gets financial aids from institutes like Council of Scientific & Industrial Research (CSIR) and University Grants Commission (UGC) etc to carry out research tasks.

The Institute Of Physics (IOP) works in close cooperation with universities / institutions of the country and hence acts as a booster for make up of scientific manpower. The institute carries out research tasks in theoretical and experimental areas of High Energy, Nuclear, Atomic, Molecular and Condensed Matter Physics, and accelerator based basic and applied sciences.

The institute has developed an excellent laboratory for surface sciences research. The Ion Beam Laboratory (IBL) is nerve center of the Institute. Almost all the experimentation activities begin from 3MV Pelletron Accelerator located in the Ion Beam Laboratory of the institute.

All the internal as well as external affairs of the institute are managed by governing council of the institute. The governing council consists of The Chairman, The Director, the members nominated by DAE and Government of Orissa. The chairman of the council is an eminent scientist.