OPTCL Signs MoU With NABARD to Boost Odisha’s Power Infrastructure

NABARD approves ₹1,685.27 crore loan—the first-ever to an Odisha PSU—to strengthen transmission projects and support the state’s growing energy needs.

Bhubaneswar: Odisha has taken a major step toward improving its power infrastructure with a new partnership between the Odisha Power Transmission Corporation Limited (OPTCL) and the National Bank for Agriculture and Rural Development (NABARD). Officials confirmed that both organisations signed a Memorandum of Understanding (MoU) in Bhubaneswar on Tuesday.

As part of this agreement, NABARD has approved a long-term loan of ₹1,685.27 crore for OPTCL. This is the first time NABARD has provided financial support to a state-owned public sector undertaking (PSU) in Odisha, marking a significant milestone for the state’s energy sector.

Deputy Chief Minister K. V. Singh Deo, who also heads the Energy Department, attended and witnessed the signing of the MoU. In a post on X, he described the moment as “landmark” and highlighted how the partnership would benefit Odisha’s power sector in the long run. He noted that the loan has been provided at a reduced interest rate of 7.75 percent per year, making it more affordable for the state.

Sharing details of the agreement, Singh Deo said that ₹900 crore from the total loan amount will be used for new transmission projects across the state. These projects are expected to improve the quality and reliability of electricity supply, especially in growing industrial and rural regions. The remaining amount will be used to replace high-cost loans currently held by OPTCL, helping the corporation reduce financial pressure and improve its long-term stability.

The Deputy Chief Minister said the collaboration with NABARD will help Odisha build strong and modern transmission networks that meet the state’s rising demand for power. As new industries and urban centres expand, better transmission lines are essential to maintain steady and uninterrupted electricity for homes, businesses, and factories.

He added that the loan will accelerate the construction of important power infrastructure and support the state’s economic growth. A more reliable grid will also help attract new industries and investments, strengthening Odisha’s position as a fast-growing state in eastern India.

Officials from both NABARD and OPTCL expressed confidence that this partnership will open the door for similar financing opportunities in the future. With growing focus on renewable energy, the improved transmission network will also help integrate solar, wind, and hydro power sources into the grid more efficiently.

This MoU marks a major step in Odisha’s ongoing efforts to modernise its energy sector and ensure high-quality power supply for its citizens and industries. The state government believes that such strategic partnerships will play a crucial role in building a stronger, more resilient energy system for the years ahead.