October 13, 2008

Hydro power key to success of power reforms in Orissa

Mr Suresh Mohapatra energy secretary of Orissa, while addressing the Foundation Day celebrations of Orissa Hydro Power Corporation, said that "Orissa is the only state which has substantially implemented power sector reforms and excelled without any subsidy from the government over the last decade."

Mr Mohapatra said that the mid term appraisal and study reports on power sector reforms in the state had categorically stated that unless an investment of over INR 3500 crore is made the reforms will collapse. He added that "We have bridged this gap by successfully remaining power surplus and also earning INR 4000 crore by sale of power to other states."

He said that elsewhere in the country, the state governments continue to provide subsidy. All liabilities were wiped out by the state government and reforms undertaken with the new entities beginning with a clean slate. In Orissa the liabilities were given to the corporations and the government neither took it nor provided subsidy, yet Gridco which had a 1700 crore accumulated loss and was facing regulation for non payment of NTPC bills five years ago has today wiped out all its losses.

Mr Mohapatra said that "Similarly the OHPC today has revenue of INR 390 crore and a fixed deposit of INR 500 crore. Hydro power is both clean and cheap power and we have been able to weather the initial storm by optimum utilization of this power. We managed to generate up to maximum levels and sell power to neighboring states."

OHPC is on expansion mode with at least nine more hydro power units being planned. It is also looking at JVs and is tying up with Orissa Mining Corporation to set up a 2000 MW thermal power station.