Odisha Thermal Power Policy Amended: Cabinet Slashes Power Purchase Norms to 5%

Bhubaneswar, May 2025: The Odisha government has approved significant amendments to the Thermal Power Policy, 2008, aiming to attract more Independent Power Producers (IPPs) and boost investment in the energy sector.

The state cabinet, chaired by Chief Minister Mohan Charan Majhi, cleared the proposal to simplify agreements and reduce mandatory power purchase obligations.

Under the revised policy, state agencies will now procure only 5% of generated power at variable cost, compared to the earlier 12–14%.

This move is expected to improve financial viability for developers and make Odisha a more competitive destination for thermal power projects.

The amendment also updates the clause heading to “MoU with future IPPs,” removing the word “Proposed” to streamline agreements.

While encouraging investment, the government has emphasised strict adherence to environmental norms and sustainability measures to minimise ecological impact.

Officials believe the changes will balance investor confidence with Odisha’s long‑term energy and environmental goals.