State to infuse Rs100cr equity in OPTCL

The Orissa government has decided to infuse Rs100 crore equity in the Orissa Power Transmission Corporation Limited (OPTCL) for strengthening the power distribution network in the unremunerative areas under the Rajiv Gandhi Grameen Vidyutikaran Yojana. A high powered committee headed by the development commissioner (DC), R N Bohidar also recommended for the equity support to OPTCL. Official sources said, OPTCL sought Rs 193 crore assistance from the state government for strengthening the power distribution network in inaccessible and unremunerative areas of the state.

It pleaded that improvement in the distribution network is badly needed in remote areas for rural electrification under the Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY). Since the corporation is not in a position to invest the required amount for strengthening the distribution network, it may be provided Rs 193 crore assistance by the state government to take up this work.

Further, it also pointed out that a number of Independent Power Producers (IPPs) and mega power plants are going to set up their units in the state. This will require evacuation of power from the state. Keeping that in view, the utility sought Rs 193 crore support from the state government. However, the committee headed by DC recommended to the state government that OPTCL may be given Rs 100 crore as equity support instead of assistance. The proposal was sent to the chief minister Naveen Patnaik for approval after clearance of the planning and co-ordination department and finance department. The chief minister Naveen Patnaik has approved the proposal recently. Sources said, Rs 100 crore will be provided to the corporation in three years staring from the current fiscal.