• This marks NABARD’s first project financing to a State Public Sector Undertaking (PSU) in Odisha.

• What? MoU signed for a long-term loan for Power Infrastructure
• Entities: Odisha Power Transmission Corporation Limited (OPTCL) and NABARD
• Loan Amount: Rs 1,685.27 crore
• Interest Rate: 7.75% per annum
• Tenure: 15 years, first 3 years as moratorium
• Purpose: Rs 900 crore for new transmission projects; remaining for swapping high-cost loans

About the Loan and Projects:
Loan Terms: The loan is offered at 7.75% interest with a 15-year repayment tenure, including a three-year moratorium.
Allocation: The loan allocates Rs 900 crore for new transmission projects, while the remaining amount will refinance existing high-cost loans to lower OPTCL’s financial burden and consumer tariffs.
Projects in Odisha: 

• Erasama GIS: Rs 900 crore will fund the 400/200 Kilovolt (KV) Gas Insulated Substation (GIS) at Erasama in Jagatsinghpur district, a project costing Rs 850 crore with Rs 600 crore financed through the NABARD loan.
• New Substations: The allocation includes construction of 132/33 KV digital substations at Agalpur-Rampur (Balangir) and Athamallik (Angul), along with a 220/33 KV GIS at Madanpur-Rampur (Kalahandi).
• Transmission Line: Funds will also support the 400 KV Talcher–Meramandali transmission line, costing Rs 77 crore, to evacuate power from the National Thermal Power Corporation (NTPC) Talcher Thermal Power Station Stage-III (2×660 Megawatt, MW).

Impact: The investment strengthens Odisha’s transmission network, ensures reliable power supply, and supports industrial and economic development across Odisha.