Bhubaneswar: The Odisha government on Saturday clarified that the proposed amendments in the State’s power policy will apply only to upcoming thermal power generation projects and will not affect the existing Independent Power Producers (IPPs) currently supplying electricity to the State under already executed Power Purchase Agreements (PPAs).
In a statement, the government said the existing availability of power to the State at variable cost would continue under the prevailing arrangements, assuring that the proposed policy revision would have no impact on the present Bulk Supply Price (BSP) and the Retail Supply Tariff (RST) payable by consumers.
The State government said the proposed revision had been undertaken after careful consideration of the prevailing industrial and economic scenario with the objective of attracting fresh investments in the power sector and accelerating industrial growth in Odisha.
According to the statement, the revised framework is intended to create an investment-friendly ecosystem that would boost investor confidence, facilitate industrialisation and contribute to the State’s overall economic development while safeguarding larger public interest.
The government further stated that establishment of new thermal power projects would lead to the growth of ancillary industries, logistics, transportation networks, engineering services and local supply chains, generating substantial economic activity across multiple sectors.
It said such investments would create large-scale direct and indirect employment opportunities for local people during both the construction and operational phases, besides supporting MSMEs, contractors, transporters and service providers.
The State government also highlighted that increased industrial and commercial activities arising out of such projects would significantly contribute to the State exchequer through collection of State GST and other statutory revenues, thereby strengthening Odisha’s financial capacity for infrastructure development and welfare programmes.
Reiterating its commitment to consumer welfare, the government said it remained fully committed to protecting consumer interests while simultaneously promoting industrial growth, employment generation and long-term economic development in the larger public interest.
