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Policy Shift to Strengthen Odisha’s Power Sector Investment Outlook

NewsBhumika Lenka26 May 2026

Bhubaneswar, May 26: Odisha is expected to attract fresh investments worth ₹25,000–30,000 crore in the power sector over the next six to twelve months following a policy shift aimed at improving investor confidence and aligning state regulations with central guidelines.

Industry representatives said the revised framework, which rationalises power allocation norms for new thermal projects, is likely to strengthen the state’s attractiveness as a power generation hub, given its strong coal reserves, port connectivity, and skilled workforce.

Under the updated approach, newly commissioned thermal power plants will be required to supply around 5% of their capacity at variable charges for state consumption. This replaces the earlier requirement of 12–14% mandatory allocation at concessional rates, which industry stakeholders had viewed as a deterrent to fresh investment.

Experts believe the reform will improve project viability, reduce regulatory uncertainty, and encourage private players to expand capacity in the state’s power sector.

Officials and industry executives noted that Odisha’s policy realignment is expected to unlock a new investment cycle in energy infrastructure, supporting both industrial growth and long-term energy security.

The move is seen as part of the state’s broader strategy to balance investor-friendly reforms with sustainable power development.