In a significant move to strengthen the power sector and draw fresh investments, the Odisha government has approved amendments to the Odisha Thermal Power Policy, 2008.
The decision, cleared by the state cabinet chaired by Chief Minister Mohan Charan Majhi, aims to make the policy more investor-friendly while ensuring stricter environmental compliance.
The amendments, notified by the Energy Department, will be implemented prospectively. A key change simplifies the Memorandum of Understanding (MoU) process for future Independent Power Producers (IPPs) by removing the word “Proposed” from the relevant clause heading, now simply titled “MoU with future IPPs.”
In a major incentive for developers, the government has reduced its right to purchase power from thermal plants. The new provision allows a nominated state agency to purchase 5% of the power generated at variable cost, down from the earlier 14%/12% slab. This adjustment is expected to improve the financial viability of projects and make Odisha a more competitive destination for thermal power investments.
The policy continues to emphasise sustainability. All IPPs will be required to strictly adhere to environmental norms and directions issued by the government and statutory bodies. Developers must implement necessary measures to minimise the environmental impact of their plants.
