Odisha Cabinet Approves Revised ₹854 Cr Paradeep Grid Project for PCPIR boost

22 May 2026, 10:03 by Vinay Kakkad · KalingaTV

The Odisha Cabinet recently greenlit a revised budget of ₹854.24 crore for building a major 400/220/33 kV grid sub-station at Paradeep (Ersama), along with the transmission lines that go with it. The project originally got the nod in 2020-21 with a cost estimate of ₹637.45 crore, but that figure jumped because of unexpected environmental and geographical challenges, plus the need for more advanced technical specifications in the area.

To cover the extra expense, the State Government will increase its equity stake in Odisha Power Transmission Corporation Limited (OPTCL). The government’s contribution goes up from ₹191.235 crore to ₹256.272 crore—adding another ₹65 crore into the project. OPTCL will raise the rest of the ₹854.24 crore on its own through institutional loans.

This upgraded power infrastructure mainly targets the booming Petroleum, Chemical and Petrochemicals Investment Region (PCPIR), which stretches across Paradeep and Kendrapada districts. PCPIR, one of the biggest zones for petroleum and chemical investments in eastern India, is seeing a sharp rise in power demand as new manufacturing plants come up. This grid station is key to meeting that need and unlocking the region’s full industrial potential.

But it’s more than just an upgrade for local industry. The project will also strengthen Odisha’s entire power transmission backbone. With a high-capacity 400 kV and 220 kV ring network, it will connect the state capital with major industrial zones like Paradeep and Kalinga Nagar (Duburi). The aim here is a steady, reliable power supply and much lower transmission losses along the coastal industrial belt.

Because of these technical changes, the project deadline now moves to the 2026-27 financial year. This extension gives engineers the breathing room to work in new environmental safeguards and install top-tier equipment. When it’s up and running, the Ersama sub-station should help Odisha emerge as an energy-surplus, industry-ready state, showing global and local investors that it has the world-class power infrastructure manufacturers are looking for.