Bhubaneswar: In a significant move, the state Cabinet on Wednesday approved amendments to The Odisha Thermal Power Policy, 2008, to make it more attractive for investors and ensuring smoother implementation of thermal power projects in the state.
Officials said the policy was originally notified to encourage thermal power generation and attract investment into Odisha’s energy sector.
As per the amendments, the heading under Clause-3 of the existing policy, currently titled “Proposed MoU with future IPPs,” has been revised by removing the word “Proposed.” The revised
heading will now read “MoU with future IPPs.”
The Cabinet also approved significant changes to Sub-Clause (iii) under Clause-3 relating to power purchase provisions from Independent Power Producers (IPPs).
Under the amended provision, a state government-nominated agency will have the right to purchase five per cent of the power sent out from thermal power plants at variable cost from IPPs. The earlier provision allowed the purchase of 14 per cent or 12 per cent of power at variable cost from such projects.
The amendments are being implemented prospectively to improve the effectiveness of the policy and enhance investor confidence, officials said.
The revised policy also mandates strict compliance by all IPPs with environmental norms and directions issued by the government and statutory authorities from time to time.
This apart, thermal power producers will be required to undertake necessary measures to minimise environmental impact arising from their operations.