Odisha slashes State Power Quota to 5% in New Thermal Policy

22 May 2026, 10:28 by Vinay Kakkad · KalingaTV

Minister Mohan Charan Majhi recently made some big changes to the Odisha Thermal Power Policy, 2008. The state Energy Department made it official, rolling out updates that are supposed to boost the regional power sector, attract new industrial investments, and make Odisha stand out for thermal power projects. The new policy kicks in moving forward.

One of the main things here is the financial incentive for developers. The government slashed its mandatory power purchase requirement. Now, the nominated agency—like GRIDCO—can buy just 5% of the power generated by thermal plants at variable cost. Before, the rule was that the state bought 14% or 12%, depending on the system. So, Independent Power Producers (IPPs) get to sell a much bigger chunk of their power on the open market.

To make things less complicated for investors, the amendment also streamlines the Memorandum of Understanding process for future power projects. The government took out the word “Proposed” from the relevant clause. Now, it just says “MoU with future IPPs,” which signals a clearer and faster jump from applying to actually getting the project going.

Even though the policy now leans more into economic flexibility, the environmental rules are still strict. Every IPP working under these new guidelines has to follow environmental standards and any orders from the state government and regulatory bodies. Developers must use all the right technology and steps to keep their power plants ecological impact as low as possible.