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Odisha Cabinet approves Rs 1,647-crore power project for Keonjhar industrial belt

To meet rising power demand in Odisha’s mineral-rich Keonjhar district, the State Cabinet has approved a Rs 1,647-crore power infrastructure project, including a new high-capacity grid substation at Basudevpur.

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April 10, 2026
Odisha Latest

New Basudevpur substation to boost power supply

Bhubaneswar: To meet rising power demand in Odisha’s mineral-rich Keonjhar district, the State Cabinet has approved a Rs 1,647-crore power infrastructure project, including a new high-capacity grid substation at Basudevpur.

The project includes construction of a 2x500 MVA, 400/220/33 kV GIS substation along with associated transmission lines to strengthen electricity supply in the region.

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Existing substations under maximum load

The move comes as existing grid substations at Barbil, Joda and Palaspanga are already operating at full capacity and cannot accommodate any additional load.

These areas form part of the Joda-Barbil-Palaspanga belt, one of Odisha’s most mineral-rich industrial zones, home to several large and power-intensive industries.

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Project to support upcoming industries

The new Basudevpur substation is expected to cater to the power needs of upcoming industries in Keonjhar district and the adjoining Koida area in Sundargarh district.

Officials said the project will not only improve power reliability but also strengthen the region’s transmission network and support future industrial growth.

State to provide 30% equity support

Of the total project cost, the Odisha government will provide 30 per cent equity support amounting to Rs 494.10 crore.

The remaining Rs 1,152.90 crore will be raised by Odisha Power Transmission Corporation Limited through banks and financial institutions.

Three-year timeline for completion

The composite project will be implemented over three years, from the 2026-27 financial year to 2028-29.

The Energy department said the project is a major step toward ensuring uninterrupted power supply for industrial expansion and economic growth in northern Odisha.

About the Author
Chinmayee Dash

Chinmayee Dash joined Sambad English on February 6, 2017 as the Content Writer. She writes news articles on regional issues, weather, national, international and human interest.

Facebook Profile: https://www.facebook.com/chinmayee.dash.39

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