Bhubaneswar: In a major step to bolster power infrastructure in the state, Odisha is set to roll out a Rs 15,948.70 crore investment proposal under Mukhya Mantri Shakti Bikash Yojana (MMSBY) to strengthen and expand the electricity transmission infrastructure.
The proposal was approved at a meeting of the Odisha Cabinet chaired by Chief Minister Mohan Charan Majhi at Lok Seva Bhawan in Bhubaneswar on Monday evening.
Describing it as the largest single investment approved so far in the power sector, chief secretary Anu Garg told reporters that the fund infusion will create a stronger and future-ready transmission network to support rising industrial and urban power demand as well as the evacuation of renewable energy.
For the first time, the state will develop a 765 KV transmission network with three new 765 KV grid substations planned at Khuntuni, Duburi and Kolabira. Two new 400 KV grid substations at Kansbahal and Titilagarh have also been approved. With six such substations already under construction and five operational, the total number of 400 KV substations will rise to 13.
At the 220 KV level, 10 more grid substations have received approval. Six new 220 KV substations have become operational over the past two years while 11 are under construction. The total number is expected to rise from 54 to 75, enabling 220 KV ring networks in Rourkela, Sambalpur and Bargarh. Bhubaneswar’s 220 KV ring network was completed in March 2026.
The expanded network will also facilitate evacuation of power from floating solar projects on the Hirakud and Indravati reservoirs and land-based solar projects in western and southern Odisha.
The Odisha Power Transmission Corporation Ltd (OPTCL) plans to deploy AI-based inspection and predictive maintenance for transmission lines. As many as 79 substations will be modernised and upgraded to meet growing demand. OPTCL’s transformation capacity is projected to more than double from 29,889 MVA to 63,364 MVA, said Garg.
The cabinet also approved the revised Buxi Jagabandhu Assured Water Supply to Habitations (BASUDHA) scheme to ensure sustainable, reliable and long-term drinking water supply across rural areas of the state. The scheme will be implemented from 2026-27 to 2028-29 with a total state-funded outlay of Rs 5,045 crore.
A proposal of the Panchasakha Shikhya Setu scheme of the School and Mass Education department was also approved. The government will provide a grant of Rs 312.96 crore over a period of five years for overall development of schools.
Other decisions:
The Cabinet approved Rs 538.51 crore for converting the Rayagada-Kareda, Komtalpeta-Muniguda-Tumudibandh and Bhawanipatna-Muniguda roads from two-lane to four-lane
Rs 8,653 crore for creation of irrigation potential through deep bore well with solar and non-solar pumping system
Rs 650 crore for building irrigation project-based tourism amenities
Restructuring of Odisha Horticulture Services Cadre, Odisha Soil Conservation Services Cadre and Odisha Agriculture Services Cadre
Amendments to the OCS (Pension) Rules, 1992 with provisions for 7% interest if pension sanction is delayed for more than a year