Odisha's Power Reform Becomes a National Model in Just Five Years

State has brought down its Aggregate Technical & Commercial (AT&C) losses significantly—a key metric of efficiency in the power sector.

Update: 2025-07-29 17:44 GMT
A power transmission line in Odisha. (DC)

 Bhubaneswar: When Odisha launched an ambitious public-private partnership (PPP) in power distribution back in 2020, few predicted it would emerge as a national success story. Today, the state’s power sector stands transformed—operationally robust, socially inclusive, and increasingly seen as a model for others to follow.

At the core of this transformation lies the partnership between the Odisha government and Tata Power, one of India’s major private utilities. Unlike other states where reforms stumbled due to resistance or poor execution, Odisha stayed the course—even through natural disasters like Cyclone Yaas and frequent Kalbaisakhis (nor'easter storms). The workforce of nearly 15,000 powering this turnaround has proven both resilient and resourceful.

The results are tangible. Power availability in Odisha, both in rural and urban pockets, has now reached levels comparable to the national average. More than 10 lakh new connections have been added in the last five years, extending service into far-flung tribal belts and underserved areas. This improved access has catalysed development, supporting everything from agriculture to small enterprises.

Crucially, the state has brought down its Aggregate Technical & Commercial (AT&C) losses significantly—a key metric of efficiency in the power sector. Industry observers attribute this to targeted infrastructure upgrades, digital customer service platforms, and a stronger, more responsive grid.

“The reform has delivered on multiple fronts—technical, operational, and social. And it’s doing so in a state that has vastly different challenges from cities like Delhi or Mumbai. That’s what makes Odisha’s model exceptional,” said power sector expert Sukanta Kumar Mohanty.

Odisha’s geography—marked by difficult terrain, low consumer density, and a high rural population—has traditionally been a hurdle to consistent power supply. While some private players abandoned similar ventures in the past, Tata Power held its ground and gradually won public trust.

The socio-economic impact has been just as significant. The partnership has created thousands of local jobs in metering, maintenance, customer service, and infrastructure development. Villages that once struggled with erratic power now report improved supply, enabling better education, healthcare, and business.

What also sets the Odisha model apart is its forward-looking approach. Beyond fixing distribution issues, Tata Power has initiated groundwork for a renewable energy roadmap. Pilot projects in decentralised solar, green skilling, and grid modernization are already underway—signaling a shift toward sustainable, clean energy access.

Odisha’s success has not gone unnoticed. Policymakers, regulatory bodies, and think tanks have begun studying the model for replication. It’s being viewed as scalable, adaptable, and—importantly—rooted in accountability.

In a sector often riddled with inefficiencies and political hesitation, Odisha’s quiet success sends a powerful message: reform is possible when backed by vision, stakeholder commitment, and community inclusion.

According to experts, as the state eyes further expansion under the “Viksit Odisha” vision, regulatory stability and policy support will be crucial. But for now, Odisha’s power sector transformation offers a rare story of governance that worked—and worked for everyone.

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