The Japan International Cooperation Agency (JICA) on Friday signed an agreement with the Government of India to provide 21,787 million Japanese Yen (or Rs 1,150crore) loan under its Official Development Assistance (ODA) to augment power transmission infrastructure in Odisha.
The agreement was signed by Shinya Ejima, chief representative, JICA India office and S Selvakumar, joint secretary, Department of Economic Affairs in the Union finance ministry.
The assistance is being provided for upgradation of sub-stations and transmission lines across Odisha to enhance the stability of power system, reliability of power supply and for reducing transmission losses.
"Availability of affordable and stable power is one of the prerequisites to realizing the growth potential of a region, and is intertwined with enhancing the pace of socio-economic development and quality of life. The augmentation of the transmission system in Odisha will contribute towards the endeavour of providing 24x7 electricity to industrial, agricultural, commercial and household consumers", said Ejima.
The civil works for the construction of sub-stations and transmission lines would be carried out by state owned Odisha Power Transmission Corporation Ltd (OPTCL) and is expected to be completed in phases by 2020. It is planned to install sub-stations under this project which will be resistant to natural disasters.
The installed power generation capacity in Odisha is expected to increase from 5,511 MW in 2014-15 to 10,932 MW by 2021-22. This increased power generation is required to address upcoming energy needs from rural and urban households and commercial complexes, irrigation, industries such as steel, aluminium and petro-chemicals, manufacturing and IT in Odisha and neighbouring states.
The assistance from JICA is expected to help develop an efficient, coordinated and economical system of intra-state power transmission, in tandem with regional requirement for uninterrupted power supply from surplus regions to deficit regions.
JICA has already extended assistance of Rs 3400 crore to Odisha by way of ODA loans since 1981. The initiatives facilitated by the ODA loans include the Rengali Irrigation project to enhance irrigated land area and the projects for forest resource management, generation of more remunerative non-timber forest produce and sewerage network development in Bhubaneswar and Cuttack.
