Bhubaneswar: A significant step towards strengthening Odisha’s power infrastructure was taken today as the Odisha Power Transmission Corporation Ltd (OPTCL) signed a Memorandum of Understanding (MoU) with the National Bank for Agriculture and Rural Development (NABARD). This collaboration marks the first-ever project financing by NABARD to any state-owned public sector undertaking in Odisha.
Under the agreement, NABARD has extended a long-term loan of Rs 1,685.27 crore to OPTCL at a reduced interest rate of 7.75% per annum, providing a strategic boost to the state’s power transmission projects. The signing ceremony was held in Bhubaneswar, with Deputy Chief Minister K V Singh Deo, who also oversees the energy department, witnessing the event and highlighting its significance for the state’s energy sector.
Allocation of Funds and Project Goals
According to Deputy CM Singh Deo, Rs 900 crore of the total loan will be invested in new transmission projects, while the remaining amount will be utilized to swap high-cost existing loans. This financial structuring aims to optimize OPTCL’s debt portfolio and reduce borrowing costs, enhancing its capacity to fund critical infrastructure projects efficiently.
The partnership between NABARD and OPTCL is expected to accelerate the development of modern transmission networks across Odisha, ensuring reliable and high-quality power supply for industries, businesses, and households. By strengthening power infrastructure, the initiative also supports the broader goal of sustained economic growth and industrial development in the state.
A Strategic Move for Odisha’s Power Sector
This historic MoU underscores Odisha’s commitment to upgrading its energy infrastructure while leveraging innovative financing models. The reduced interest loan from NABARD not only facilitates expansion of transmission networks but also exemplifies effective public sector collaboration to meet growing energy demands.
With the successful implementation of these projects, Odisha is set to enhance grid stability, reduce transmission losses, and provide a strong foundation for industrial expansion and economic development.
About OPTCL
The Odisha Power Transmission Corporation Ltd is the state’s key agency responsible for the transmission of electricity across Odisha. OPTCL operates and maintains high-voltage transmission networks, ensuring reliable power supply to urban and rural areas and supporting the state’s overall energy security.
About NABARD
The National Bank for Agriculture and Rural Development (NABARD) is a premier financial institution in India, established in 1982 to provide credit and developmental support for agriculture, rural development, and allied sectors. It plays a key role in financing and promoting sustainable infrastructure projects, improving rural livelihoods, and strengthening the country’s agricultural and rural economy. NABARD also provides long-term loans, refinancing, and technical assistance to state governments, cooperatives, and other financial institutions.
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