Bhubaneswar: Odisha has cleared a major power infrastructure push in Keonjhar district, approving a ₹1,647-crore project to meet rising industrial electricity demand in one of the state's key mineral belts.
The State Cabinet has sanctioned the construction of a high-capacity 2×500 MVA, 400/220/33 kV GIS grid substation at Basudevpur, along with associated transmission lines to strengthen supply in the region.
The decision comes as existing substations at Barbil, Joda and Palaspanga are operating at peak capacity, leaving little room to support additional industrial load. These areas form the Joda-Barbil-Palaspanga corridor, a hub of mining and power-intensive industries in northern Odisha.
Officials said the new facility will cater to upcoming industrial units in Keonjhar and nearby Koida in Sundargarh district, while improving grid stability and transmission efficiency.
The state government will provide 30 per cent equity support, amounting to ₹494.10 crore. The remaining ₹1,152.90 crore will be mobilised by Odisha Power Transmission Corporation Limited through loans from banks and financial institutions.
The project is scheduled for completion over three years, from 2026-27 to 2028-29 and is expected to ensure reliable power supply to support industrial expansion and economic growth in the region.