(Thanks to Sanjib Karmee for the pointer.) The following graphics is from an article in Outlook.

This may happen much sooner than 2040. I think if this is done through a nationwide initiative all over India then it could turn out to be good. Of course, for this to work some additional steps need to be taken. For example, the supreme court strength has to increase so as to deal with inter-state disputes that will be caused by this; A big chunk of money has to be allocated to the new states (the states that will lose their capital area or main city) to build infrastructure; etc.

In the context of Odisha I have had brief discussions with some people on splitting of Odisha suggesting that this will lead to more areas of Odisha having better infrastructure. For example, if there are two states, then there will be two capital areas with associated infrastructure that come with most capitals of the country (an airport, good train connectivity, etc.). One of the reason that is often given to counter this is that if Odisha is divided, each part will have even lesser clout at the center and as it is Odisha has fewer number of MPs than many other states and thus has less clout than those states.

If the divisions happen all across the country, then the above reason may be less applicable.

Also, since the states will no longer be on linguisitic basis the issue of Kosali vs Odia language will not be a factor.