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Odisha Power Transmission Corporation Ltd has signed an MoU with NABARD to secure a long-term loan of INR 1,685.27 crore for strengthening and expanding the state’s power transmission network. This marks NABARD’s first project-financing support to any Odisha PSU. Deputy Chief Minister K. V. Singh Deo said the loan, offered at a concessional 7.75% interest rate, reflects confidence in the state’s energy reforms. About INR 900 crore will fund new transmission lines, substations and corridor upgrades, while the rest will refinance high-cost debt. The partnership is expected to boost power reliability for industries and households and support Odisha’s broader economic and infrastructure growth plans.
Odisha Power Transmission Corporation Ltd entered into a significant financial partnership with NABARD earlier this week through the signing of a Memorandum of Understanding aimed at expanding and modernising the state’s power transmission network. Senior officials confirmed that NABARD has sanctioned a long-term loan of INR 1,685.27 crore to OPTCL, marking the first instance of project financing by the development bank for any state-owned public sector undertaking in Odisha. Advertisement
The signing ceremony took place in Bhubaneswar in the presence of Deputy Chief Minister K. V. Singh Deo, who also holds charge of the energy department. He noted in a post on X that the loan had been extended at a reduced interest rate of 7.75% per annum, describing the development as a milestone for Odisha’s infrastructure financing landscape. According to Singh Deo, the arrangement underscores NABARD’s confidence in the state’s power sector reforms and its growing need for reliable infrastructure funding.
Of the total sanctioned amount, INR 900 crore will be allocated to new transmission projects designed to address rising demand across industrial, commercial and residential sectors. These projects include the expansion of high-capacity transmission corridors, modern substation infrastructure and network strengthening initiatives essential for enhancing power stability across the state. The remaining loan amount will be used to refinance OPTCL’s existing high-cost borrowings, improving the utility’s financial position and enabling smoother execution of future capital works.
Officials stated that the collaboration is expected to accelerate the delivery of critical transmission assets, thereby supporting Odisha’s broader economic development plans. A reinforced network is projected to benefit both large industries and retail consumers by reducing outages and ensuring more consistent power supply, particularly in rapidly growing urban and industrial clusters.
Energy department representatives also indicated that the partnership aligns with the state’s long-term strategy to develop a robust backbone for power-intensive sectors, promote industrial investment and enhance service quality across distribution networks. The agreement signals a renewed push towards infrastructure modernisation, supported by targeted financial intervention and long-term planning.
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