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Rural power faces fund challenge

Rural power faces fund challenge
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As the state gears up to meet additional power demand of 3500 MW for rural electrification by the end of 12th Plan, it is facing a challenge to raise Rs.7500 crore required to develop matching transmission infrastructure.

The additional internal power demand of 3500 MW projected in the power survey report of the Central Electricity Authority (CEA) is estimated to cost Rs.7500 crore on thumb rule that cost of generation of one MW is equal to the cost of transmission and distribution in 50:50 ratio.

The State-owned Odisha Power Transmission Corporation Ltd (OPTCL) has floated two joint venture companies with Power Grid Corporation of India Ltd (PGCIL) and Mahanadi Coalfields Ltd (MCL) – Kalinga Power Transmission Corporation and Neelachal Power Transmission Corporation respectively. The two joint venture companies will invest Rs.3500 cr, said Energy Minister Pranab Prakash Das.

He said OPTCL has already taken initiative to take up transmission lines by investing Rs.1000 cr through PPP.

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