In a decisive move to accelerate industrial growth in the Petroleum, Chemical and Petrochemicals Investment Region (PCPIR), the Odisha Cabinet on Wednesday approved a revised cost estimate of ₹854.24 crore for the 400/220/33 kV Grid Sub-Station at Paradeep (Ersama) and its associated transmission lines.
Originally sanctioned in 2020-21 at ₹637.45 crore, the project cost has risen due to unforeseen environmental and geographical challenges, along with updated technical specifications. The State Government will now increase its equity contribution in OPTCL from ₹191.235 crore to ₹256.272 crore — an additional ₹65 crore — while OPTCL will arrange the balance through loans.
The upgraded facility is expected to play a pivotal role in meeting the surging electricity demand of upcoming industries in the PCPIR spread across Paradeep and Kendrapada. Beyond serving the coastal industrial belt, the project will also strengthen the state’s transmission backbone by establishing a robust 400 kV and 220 kV ring network.
This will seamlessly connect the state capital region with major industrial hubs such as Paradeep and Kalinga Nagar (Duburi), ensuring reliable, high-capacity power supply and reducing transmission losses.
The revised timeline, now extended till FY 2026-27, will allow engineers to incorporate the latest environmental safeguards and technically superior equipment without compromising quality or safety. Once operational, the Ersama sub-station is set to become a game-changer for Odisha’s economy. It will not only unlock the full potential of the PCPIR — one of the largest petroleum and chemical investment zones in eastern India — but also signal to investors that the state is fully geared to support large-scale manufacturing with world-class power infrastructure.
With this approval, Odisha takes another firm step towards its vision of becoming an energy-surplus, industry-friendly powerhouse.
