OPGC Suffers ₹3,452 Crore Loss Due to Repeated Shutdowns and Poor Maintenance
Jharsuguda-based power corporation records 9,864 million unit production shortfall over five years
Bhubaneswar : Odisha Power Generation Corporation (OPGC), located at Banharipali in Jharsuguda district, has suffered a staggering loss of ₹3,452 crore due to operational inefficiencies and frequent plant shutdowns. Between April 2020 and September 2025, the state-run thermal power producer recorded a cumulative generation shortfall of 9,864 million units of electricity, significantly impacting its revenue and overall performance.
According to the performance standards set by the Odisha Electricity Regulatory Commission (OERC), OPGC’s older 420 MW thermal power station is expected to achieve 83% capacity utilization annually, while the newer 1,320 MW (Phase-II) plant is required to maintain at least 85%. However, both facilities have consistently underperformed over the past five years, revealing major gaps in maintenance and plant management.
Data from OPGC indicates that the older power unit experienced annual production losses ranging from 3% to 15% between FY 2020–21 and FY 2024–25. Although the unit managed to achieve an average generation of 85% in the first half of the current financial year—an improvement of about 2%—it still fell short of regulatory standards. Over the 66-month period, the plant produced 1,671 million units less than expected, resulting in a revenue loss of approximately ₹585 crore, calculated at ₹3.50 per unit.
The newer 1,320 MW power plant has fared even worse. Over the same period, it recorded up to 34% production loss, operating at just 76% of capacity in the first six months of the current fiscal year—a 9% shortfall. The new unit alone accounted for a generation loss of 8,192 million units, translating into a revenue deficit of ₹2,867 crore. Combined, the two plants have cost the corporation ₹3,452 crore in lost revenue, exposing serious inefficiencies in OPGC’s operational management.
Officials said that for plant safety and longevity, routine maintenance shutdowns are carried out annually for about one month, while major overhauls take place once every four years. However, the actual frequency of breakdowns has been far higher than recommended. Records show that the old power station was shut down 80 times in the past five years, including 18 instances in FY 2024–25 alone. In the first six months of the current year, the old unit was forced to halt operations 12 times, while the new unit faced 14 shutdowns—far exceeding maintenance norms.
Experts warn that such repeated shutdowns have ripple effects beyond OPGC’s balance sheet. Energy analyst Anand Mahapatra noted that frequent generation losses force GRIDCO, the state’s power purchasing utility, to procure additional electricity from the National Thermal Power Corporation (NTPC) at higher prices. “As a result, the financial burden ultimately falls on consumers, who end up paying more for electricity,” Mahapatra said.
The prolonged underperformance of OPGC’s plants has raised questions about the efficiency of maintenance contracts and the accountability of operational management. While the company has made attempts to stabilize generation in recent months, analysts suggest that unless maintenance practices are strengthened and operational reliability improves, the state may continue to face rising electricity costs and supply imbalances.
With Odisha’s power demand growing steadily, OPGC’s operational recovery will be critical in ensuring affordable and reliable electricity supply to industries and households alike.
