25-06-2025
- Business
- New Indian Express
KV Singh Deo seeks RDSS support to build resilient power infrastructure
BHUBANESWAR: The Odisha government on Tuesday made a strong pitch for central financial assistance to strengthen the state's disaster resilient power infrastructure under the revamped distribution sector scheme (RDSS).
Attending the Conference of State Energy Ministers and Energy Secretaries of Eastern Region States at Patna in Bihar, deputy chief minister-cum-Energy minister KV Singh Deo urged Union Power minister Manohar Lal Khattar to sanction Rs 6,284 crore under the RDSS to the state.
The state government's proposal is pending approval by the Ministry of Power since June 2023. In April 2023, the state cabinet had approved the Energy department's proposal to implement the revamped distribution sector scheme (RDSS) to improve reliability and resilience in the power distribution network, especially in the coastal districts covered by TPCODL, TPNODL and TPSODL.
While a major part of the proposal amounting to Rs 4,248 crore (67 per cent) of the total project proposal was towards creation of cyclone resilient power infrastructure, the state government had posed Rs 1,510 crore for upgradation of distribution infrastructure, Rs 428 crore for smart metering and Rs 97 crore for project management agency (PMA).
After initial reluctance to accept the state's proposal as the central scheme does not permit financial assistance to private distribution companies (discoms), the Power Ministry finally agreed to consider it following assurance from the state government that the assets to be created under the programme will be in its books of account and there will be no tariff impact on the consumers.
The state's proposal is hanging fire even after compliance to queries from the Power Finance Corporation (PFC) and several rounds of discussion with PFC officials. Singh Deo also reiterated the state's demand for allocation of 800 MW of power from the second unit of the super critical thermal power plant of Neyveli Lignite Corporation India Limited (NLCIL) at Talabira in Sambalpur district.
The central PSU is setting up a 2,400 MW (3x800 MW) pit-head thermal power plant for which it has already procured power purchase agreements (PPAs) with four states including Odisha. GRIDCO will get 800 MW power from the first unit of the power plant which is expected to be commissioned in 2028-29 while 1,500 MW will go to Tamil Nadu, 400 MW to Kerala and 100 MW to Puducherry.
Apart from use of its coal, water and land, the state will face all the externalities of the power plant while the major beneficiary is Tamil Nadu. The state has been demanding additional 800 MW from the second unit of the thermal project.
