Govt launches Rs 2,600 cr scheme to set up 500 substations

The state government today launched the Rs 2,600 crore scheme to strengthen power distribution network and provide seamless electricity supply across the state.

The scheme envisages setting up of 500 power substations. In the first phase, 178 sub-stations with 33 and 11kv capacity will be established. The state energy department has already floated a tender in this regard on September 25.

"The project will be implemented in a phased manner within next three years. In the first phase, 178 sub-stations will be constructed and this will be followed by 165 sub-stations in the second phases. The balance 150 will be installed in the last phase," said Chief Minister Naveen Patnaik while inaugurating the Odisha Distribution System Strengthening Project today.

"The project shall cover all the 30 districts with priority focus on the rural and semi-urban areas," he added.

Upgradation of power distribution infrastructure needed extra attention from the state government as Odisha currently has 588 substations in total with 193 33 kV substations separated by a distance of more than 30 km, resulting in huge transmission losses. Besides, rising consumer base of the state, which has gone up by five times to 5 million within a span of 13 years, has necessitated the need for upgradation of power distribution infrastructure.

Though the four power distribution companies (discoms) of the state are working on a Rs 2,400 cr capital expenditure plan to develop distribution network, the government said, it was forced to put extra investment from its kitty considering the poor financial health of the companies.

"Although private sector participation was allowed in electricity distribution way back in the year 1999 to achieve the objectives of technical up-gradation and infusion of necessary funds, the achievement is far from satisfactory. The financial health of discoms being poor, it has become imperative for the state government to invest in power distribution infrastructure in order to provide quality power to the people of Odisha," said state energy minister Arun Sahu, justifying the expenditure to be made by the state government.

For 2013-14, the state government has sanctioned an amount of Rs 100 crore for setting up of new substations and laying cable lines. The funds will be released in small instalments within a span of three years.

The improved power supply, after the establishments of the substations, will pave the way for industrial and agricultural growth and improve the quality of essential services, Patnaik said outlining the salient features of the project

Apart from upgrading the existing power network, the state energy department has also initiated steps to lay underground cables in important areas such as Puri temple, Lingaraj emple and Samaleswari temple, informed the energy minister.