THEBUSINESSBYTES BUREAU
BHUBANESWAR, MAY 23, 2026
The Odisha Government on Saturday clarified that the proposed amendments
in the State’s power policy are aimed exclusively at upcoming thermal power
generation projects and will have no bearing on the existing Independent Power
Producers (IPPs) currently supplying electricity to the State under already
executed Power Purchase Agreements (PPAs).
In an official clarification, the Government stated that the present
availability of power to the State at variable cost will continue under the
prevailing arrangements, ensuring that there will be no impact on the existing
Bulk Supply Price (BSP) and Retail Supply Tariff (RST) payable by consumers
across Odisha.
The State Government explained that the proposed policy revision has been
undertaken after careful consideration of the prevailing industrial and
economic landscape, with the primary objective of attracting fresh investments
in the power sector and accelerating industrial growth in Odisha. According to
the clarification, the revised framework is intended to create a more
investment-friendly ecosystem that would enhance investor confidence,
facilitate rapid industrialisation and contribute significantly to the State’s
long-term economic development while fully safeguarding the larger public
interest.
The Government further highlighted that establishment of new thermal
power projects has the potential to generate substantial economic activity
across multiple sectors by promoting the growth of ancillary industries,
logistics, transportation networks, engineering services and local supply
chains. Such investments, it said, would create large-scale direct and indirect
employment opportunities for local communities during both the construction and
operational phases. In addition, MSMEs, contractors, transporters and various
service providers are expected to benefit from the increased industrial
activity.
Emphasising the broader economic gains, the Government noted that expansion of industrial and commercial activities would also contribute significantly to the State exchequer through collection of State GST and other statutory revenues. This, in turn, would strengthen Odisha’s financial capacity for undertaking infrastructure development and welfare initiatives.
Reiterating its commitment to balanced growth, the State Government asserted that consumer interests would remain fully protected even as Odisha pursues industrial expansion, employment generation and sustainable long-term economic development in the larger public interest.
