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Distributed video coding (DVC) has become increasingly popular in recent times among the researchers in video coding due to its attractive and promising features. DVC primarily has a modified complexity balance between the encoder and decoder, in contrast to conventional video codecs. Side information generation, carried out at the decoder, is a major function in the DVC coding algorithm and plays a key-role in determining the performance of the codec. In this paper, a novel enhanced algorithm is proposed for the side information generation process where the side information is evolved over the processing of each bit plane. Simulation results of the proposed technique depict a consistent improvement in performance in comparison to the state-of-the-art in pixel domain DVC.