The Japan International Cooperation Agency (JICA) on Friday signed an agreement with the Government of India to provide Japanese Official Development Assistance (ODA) loan of 21,787million Japanese Yen (approximately `1,150 crore) to augment power transmission infrastructure in Odisha.
The agreement was signed by JICA India office chief representative Shinya Ejima with Union Ministry of Finance Joint Secretary S Selvakumar.
The assistance will provide for substations and transmission lines across Odisha to enhance the stability of power system and reliability of power supply and reduce transmission loss in the State with increasing electricity demand due to rapid economic growth.
The installed power generation capacity in the State is expected to increase from 5,511 MW in 2014-15 to 10,932 MW by 2021-22. This increased power generation is required to address upcoming energy needs from rural and urban households and commercial complexes, irrigation, industries and IT in Odisha and in neighbouring States.
The civil works for the construction of substations and transmission lines would be carried out by the Odisha Power Transmission Corporation limited (OPTCl) and will be completed in phases by 2020. From the view point of disaster prevention, it is planned to install substations in this project that are resistant to natural disasters, official sources said.
JICA has extended JPY 65,021 million (approximately `3,400 crore) in ODA loans since 1981 for all-round development in Odisha. The initiatives facilitated by the ODA loans include the Rengali Irrigation Project to enhance irrigated land area, the project for forest resource management and generation of more remunerative non-timbre forest produce and the project for sewerage network development in Bhubaneswar and Cuttack.