Power reforms in Odisha have swiftly evolved into a nationally acclaimed model within a span of five years.
In the eastern Indian state of Odisha, a significant transformation has taken place in the power sector. This transformation is the result of a public-private partnership between the Odisha government and Tata Power, a leading Indian energy company.
The partnership, established in 2020, has turned Odisha's power distribution system from a loss-making, unreliable sector into a nationally recognized model for successful power sector reform and sustainable growth.
A National Success Model
The collaboration has led to a substantial improvement in the performance and financial health of Odisha's power distribution companies (Discoms). Tata Power's acquisition and management of these Discoms have resulted in a reliable power supply for around 13 million customers and substantial reductions in losses, which previously hampered the sector.
This partnership has enabled Odisha Discoms to emerge as a model for Discom reforms across India, supported by strong operational and financial performance. In Q1 FY26, the Discoms reported a 156% year-on-year profit growth to ₹105 crore.
Focus on Efficiency and Renewable Energy
Key factors in this transformation include Tata Power's focus on operational efficiency, loss reduction, and the incorporation of renewable energy sources. These efforts align with the broader goals of India's energy transition. Tata Power is also expanding its footprint and driving innovation and scale in clean energy, with over 65% of its generation portfolio coming from green sources.
Socio-Economic Impact
The transformation has extended reliable electricity access into rural and urban areas of Odisha, bringing power availability levels comparable to the national average. This has created thousands of local jobs in metering, maintenance, customer service, and infrastructure development.
The socio-economic impact of the partnership has been just as significant as the power sector transformation. Villages that once struggled with erratic power now report improved supply, enabling better education, healthcare, and business. More than 10 lakh new connections have been added in the last five years, extending service into far-flung tribal belts and underserved areas.
Overcoming Challenges
Despite natural disasters like Cyclone Yaas and frequent Kalbaisakhis, Odisha has stayed the course with the reform. The state's commitment to this forward-looking approach, stakeholder commitment, and community inclusion have been crucial to its success.
Looking Forward
As Odisha eyes further expansion under the "Viksit Odisha" vision, regulatory stability and policy support will be crucial. The Odisha model is being studied for replication by policymakers, regulatory bodies, and think tanks. Pilot projects in decentralised solar, green skilling, and grid modernization are underway in Odisha. Tata Power has initiated groundwork for a renewable energy roadmap in Odisha.
The workforce powering this transformation in Odisha consists of nearly 15,000 people. The success of Odisha's power sector transformation is a rare story of governance that worked for everyone, offering a scalable, adaptable, and accountable model for other states. Tata Power has won public trust in Odisha, despite the state's challenging geography and traditionally inconsistent power supply.
In summary, the Odisha government and Tata Power partnership have revitalized the state's power distribution system, turning it from a loss-making, unreliable sector into a nationally recognized model for successful power sector reform and sustainable growth.
- Despite the unfavorable conditions in Odisha, such as natural disasters and a historically inconsistent power supply, the commitment to the power sector reform has been unwavering.
- The successful partnership between the Odisha government and Tata Power has led to a significant transformation in the sports of power distribution, with Odisha's Discoms becoming a model for reform and sustainable growth across India.
