No, Odisha already has a IIIT at Bhubaneshwar. However SUIIT at Burla is a good institute and provides in depth education in Information Technology.

According to proposals all states are entitled to one IIT, NIT and IIIT. Of course there are exceptions like UP where due to the excess number of aspirants there are 2 IITs at Kanpur and BHU as well as 2 IIITs at Allahabad and Gorakhpur.

I dont know from where you got to know this regarding SUIIT being transformed into an IIIT, if true there might be very bleak chances.

For more information regarding SUIIT Burla do follow the link below

https://www.careers360.com/colleges/sambalpur-university-institute-of-information-technology-burla