JICA loan to augment power transmission in Odisha

Odisha Channel Bureau New Delhi, May 15: Japan International Cooperation Agency (JICA) today signed an agreement with the Government of India to provide 21,787million Japanese Yen (approx Rs.1,150 crore) Japanese Official Development Assistance (ODA) loan to augment power transmission infrastructure in Odisha.The agreement was signed by Shinya Ejima, Chief Representative, JICA India Office with S.Selvakumar, Joint Secretary, Department of Economic Affairs, Ministry of Finance, Government of India.The assistance will provide for substations and transmission lines across Odisha to enhance the stability of power system and reliability of power supply and reduce transmission loss in the state with increasing electricity demand due to rapid economic growth.As a consequence of remarkable economic growth of Odisha, one of the fastest among the states, which is expected to mark around 9% in 2014-15, 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 in neighbouring states.Beside, the generation capacity increase along with the economic growth, now the development of power transmission network that deliver the generated electricity has become an important challenge.Availability of uninterrupted and stable electricity is a precursor to sustained economic growth across urban and rural areas.The assistance will further development of 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.“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 endeavor of providing 24×7 electricity to industrial, agricultural, commercial and household consumers,” said Ejima, Chief Representative, JICA India Office.The civil works for the construction of substations and transmission lines would be carried out by Odisha Power Transmission Corporation Limited, Government of Odisha, and will be completed in phases by 2020.From the view point of disaster prevention, it is planned to install substations in this project that are resistant to natural disasters.JICA has extended JPY 65,021 million (approx Rs.3,400 crore) in ODA loans since 1981 for all-round development in Odisha.The initiatives facilitated by the ODA loans include the Rengali Irrigation Project to enhance irrigated land area, the project for forest resource management and generation of more remunerative non-timber forest produce and the project for sewerage network development in Bhubaneswar and Cuttack.