Odisha’s power sector makeover: Quietly becoming India’s most talked-about reform

By Swagatika Mohapatra

Bhubaneswar, July 30: Five years ago, when Odisha ventured into a public-private partnership (PPP) to fix its ailing power distribution system, the move was seen by many as a gamble. The state had struggled for decades with poor electricity supply, high losses, and patchy rural service. Today, however, the results are telling a different story—one of grit, systemic overhaul, and grassroots impact.

At the centre of this shift is the Odisha government’s alliance with Tata Power, which took over distribution operations in 2020. Since then, the partnership has redefined service delivery in a state long marked by difficult terrain, low population density, and frequent natural calamities.

The scale of transformation is hard to ignore. Power supply in rural areas has improved markedly, and in many pockets, now rivals that of urban regions. Over one million new consumers—many in remote tribal belts—have been connected in just five years. Discom staff, numbering nearly 15,000, have kept systems running through cyclones like Yaas and recurring summer storms, underscoring the quiet heroism behind the success.

“What makes Odisha’s model stand out is not just improved service metrics but the depth of its rural penetration. It’s a rare example of reforms that are both inclusive and sustainable,” says Dr. Arun Kumar Nayak, an expert on power reforms.

Technical improvements have also been substantial. The state has reported a consistent drop in Aggregate Technical & Commercial (AT&C) losses, thanks to digitised customer service, remote metering, and significant grid upgrades. Investment in backend systems has translated into better reliability, faster grievance redressal, and real-time outage management.

The benefits haven’t just been technical or infrastructural. Thousands of local jobs have been created in customer care, technical services, and project maintenance. For many young people in smaller towns and villages, the power sector has opened up new career pathways.

Unlike other states where private operators withdrew after facing operational hurdles, Tata Power has stayed invested in Odisha’s challenging landscape. This long-term commitment has helped build public confidence and ensure continuity in service delivery.

Beyond distribution, the roadmap ahead is equally ambitious. Tata Power has begun laying the groundwork for renewable energy integration—rolling out decentralised solar pilots and green workforce training initiatives. The plan is to prepare Odisha’s grid for a clean energy future, while ensuring equitable access to sustainable power.

The success has already caught national attention. Several states and central think tanks are studying the Odisha model as a blueprint for reform. What sets it apart, many say, is its clarity of purpose, stakeholder alignment, and steady focus on consumer benefit.

For a state once seen as a laggard in utility performance, Odisha now presents a case study in turnaround. Its power sector has not only stabilised but is fast evolving into a forward-looking, citizen-centric service.

As Odisha continues on its “Viksit Odisha” mission, the power sector’s progress offers a powerful lesson: good governance, when rooted in collaboration and community engagement, can light up more than just homes—it can power transformation itself.