The Odisha cabinet on Wednesday approved a revised cost estimate for a grid substation at Paradip (Ersama) to cater to the increasing power demand from upcoming industries in the Petroleum, Chemical and Petrochemicals Investment Region (PCPIR).
Background of the Project
The state government had initially cleared the Odisha Power Transmission Corporation Limited's (OPTCL) proposal in 2020-21 to establish a 400/220/33 kV grid substation at Paradip (Ersama), along with associated transmission lines. The original estimated cost was Rs 637.45 crore. Under the initial plan, the state government was to contribute 30% (Rs 191.23 crore) as equity in OPTCL, while the remaining 70% (Rs 446.21 crore) was to be raised through loans.
Revised Cost and Equity
Due to environmental and geographical constraints, as well as changes in technical specifications, the project cost has now been revised to Rs 854.24 crore. Consequently, the state's equity contribution will increase to Rs 256.27 crore, representing 30% of the revised cost.
Benefits of the Project
The grid substation is expected to significantly enhance power infrastructure for the PCPIR. It will strengthen the transmission network by linking the state capital region with industrial hubs such as Paradip and Kalinga Nagar (Duburi) through a 400 kV and 220 kV ring network. This development is crucial for supporting the growing industrial activities in the region and ensuring reliable power supply.
The cabinet's approval marks a key step towards bolstering Odisha's power transmission capacity, facilitating industrial growth, and attracting further investments in the PCPIR.
