India and the Japan International Cooperation Agency (JICA) on 15 May 2015 signed an ODA (Official Development Assistance) loan agreement to provide up to 21787 million yen (about 1165 crore rupees) for the Odisha Transmission System Improvement Project (OTSIP).
The agreement was signed by Joint Secretary in the Union Ministry of Finance S Selvakumar and JICA India Office Chief Representative Shinya Ejima in New Delhi.
The purpose of the loan is to assist in establishing a stable power supply to the state in advance of an expected large increase in power demand in the coming years due to rapid industrialization.
Features of ODA to OTSIP
• Transmission lines extending around 971 kilometers and 18 substations will be constructed to improve the power transmission efficiency and stabilize the power supply.
• Technologies like low-loss conductors and outdoor Gas Insulated Substations (GIS) will be established for some of the transmission lines and substations respectively for the first time in the state.
• The Odisha Power Transmission Corporation Limited will be the nodal agency to execute the project.
• The JICA will charge 0.8 percent per annum interest rate and the loan repayment period is 20 years in addition a 6 years grace period.
• The project will be completed by January 2020.
JICA has extended about 3400 crore rupees in ODA loans since 1981 for all-round development in Odisha.
It has also provided for loans up to 65260 crore rupees in ODA loans since 1958 for enhancement of power generation and transmission infrastructure in India.
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Where: New Delhi
When: 15 May 2015