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Odisha to seek FRBM clearance for ADB assisted power sector project

The ADB loan is meant for cyclone insulated infrastructure for transmission and distribution of electricity in the coastal zone

BS Reporter  |  Bhubaneswar 

The Odisha government will take the nod of its Cabinet and obtain FRBM (Fiscal Responsibility & Budget Management) clearance from the department of expenditure, Government of India, to avail loan from Asian Development Bank (ADB).

ADB had agreed on a loan of $100 million to help rebuild power infrastructure in regions of Odisha affected by the Phailin storm that struck the state's southern coast on October 12.

“As per the request of the finance department, the draft Cabinet memorandum has been prepared on behalf of the finance department. It is therefore requested to take necessary steps for obtaining approval of the State Cabinet and FRBM clearance from the department of expenditure, Government of India”, C P Mohanty, additional secretary (energy) wrote to D K Jena, additional secretary at state finance department.

The cost of the project, 'Odisha Power Sector Emergency Assistance Project' (OPSEAP), is estimated at Rs 1,000 crore.

While ADB has agreed to provide a loan of around $100 million, the balance cost of the project will be funded by the state government.The ADB loan is meant for cyclone insulated infrastructure for transmission and distribution of electricity in the coastal zone and also for strengthening river and saline embankments.

Under OPSEAP, the state government plans to go for a smart grid power network.

A smart grid is a modernized electrical grid that uses analogue or digital information and communication technology to gather and act on information to improve the efficiency, reliability, economics, and sustainability of the production and distribution of electricity.

Phailin hit the state's southern coast near Gopalpur on October 12 last year causing extensive damage to the power infrastructure with almost the whole of Ganjam district plunging into darkness.

While people in the district had to cope up without electricity for weeks, it took over two months to achieve full restoration of the power infrastructure.Around Rs 300 crore has been spent to repair and rebuild the power infrastructure in Ganjam alone where 80 per cent of 33/11 KV lines were damaged due to the cyclone.

The storm had battered nearly 1600 km of 11 KV lines in Ganjam district while 241 km of 33 KV lines were badly damaged.

The rebuilding exercise included replacement of 300 distribution sub-stations and 54 extra high tension towers.Besides, 13000 km of low tension lines had to be repaired.

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First Published: Tue, May 20 2014. 20:15 IST