The city is so called because earlier it was in possession of the Savar chief Dhenka. Dotted with temples and several archaeological sites some of the important temples of Dhenkanal are Balabhadra temple, Sambhugopal temple, Raghunath temple and Kunajakanta Krishna temple. Surrounded by mountains this serene place is known as `Tourist Paradise` because of its scenic beauty.
On the Kapilas range, which is situated 26 km. from Dhenkanal, enshrines the temple of Lord Chandrasekar, Vishwanath and Narayan. Sirdi Sai temple is also situated near Kapilas. The Dhenkanal Science Park and the Deer Park are the other places of tourist interest in Dhenkanal. Joranda, 25 km from Dhenkanal, the religious headquarters of Mahim cult and Saptasajya 11 km. south east of Dhenkanal are suitable excursion sites in the neighbourhood. It is also the gateway to one of the ancient forest covers of Orissa, which is the habitat of numerous species of birds and animals.
According to the 2001 census report, Dhenkanal had a population of 57,651 inhabitants. Males constitute 53% of the population and females constitute 47% of the population. In Dhenkanal 10% of the population is less than six years of age. Dhenkanal has an average literacy rate of 79%,which is higher in comparison to the national average literacy rate of 59.5%. The male literacy rate is 84% and, the female literacy rate is 74%.
Dhenkanal is famous for its wonderful Dhokra work .
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