With the Centre expressing its ‘reservations’ to approve Odisha’s proposal seeking Rs 9,755 crore from the National Disaster Mitigation Fund to build disaster-resilient power infrastructure, the Odisha government has sought Union Home Minister Amit Shah’s intervention to facilitate an appropriate financing structure to take up the ambitious project.
The state’s move to make the power transmission and distribution network disaster proof in highly vulnerable coastal districts assumes significance as Odisha frequently borne the brunt of severe cyclones because of its geographical location.
Officials in the energy department said Coalition for Disaster Resilient Infrastructure (CDRI) jointly with the state government has identified that over 30 percent of sub-stations lie within 20 km of the coast line and 75 percent of distribution lines were commissioned three decades ago. making them highly susceptible to cyclone and flood related damages.
In the past two decades, the state with more than 550 km coastline along the Bay of Bengal, faced more than seven severe to extremely severe cyclonic storms which caused extensive damage to critical infrastructure especially the power-related infrastructure.
Official sources said Odisha’s power network has suffered a cumulative damage of nearly Rs 10,000 crore due to cyclones over 1999 (the year Odisha was hit by Super cyclone that claimed over 10,000 lives) to cyclone Fani in 2019. Multiple studies also suggest that prolonged power disruption and blackouts reduce firm revenues by 5-10 per cent.
The Odisha government has placed a formal proposal before the National Disaster Management Authority on April 27 seeking funds from disaster mitigation funds. Before, state’s deputy CM KV Singh Deo, who holds the energy department, had also written to Shah seeking funds from the Centre for disaster-resilient power infrastructure in Odisha.
“While Odisha has made significant progress in reducing disaster mortality through investments in preparedness, early warning systems and evacuation planning, the disruption of critical infrastructure continues to impose substantial economic and social costs and adversely affects continuity of essential public services,” said Odisha chief minister Mohan Charan Majhi in a letter to Shah on June 16.
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The proposed interventions include underground cabling of critical corridors, cyclone-resilient transmission and distribution systems, resilient substations, network redundancy, protection of lifeline facilities and adoption of advanced technologies to ensure continuity of services during and after disasters.
Majhi’s letter to the Union home minister came weeks after Union minister of state for home affairs Nityananda Rai responded to the state’s government’s proposal saying that the primary responsibility of disaster management rests with the state governments while the Centre only supplements the efforts.
Rai also informed that proposals related to power generation. transmission, and distribution infrastructure, in which large-scale investments are typically made by regional and commercial entities. He said such commercial entities are expected to incorporate disaster-resilient design and risk mitigation measures into their investment framework.
As damage to transmission and distribution systems during major cyclones directly affects hospitals, drinking water supply systems/ telecommunications, emergency operations centres, cyclone shelters, transportation services and livelihoods, building disaster-proof infrastructure will substantially reduce recovery time for essential services following major disasters.
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Citing the move as a nationally significant initiative, Majhi appealed that strengthening the resilience of these systems is not merely a sectoral investment but a “critical disaster risk reduction intervention” that directly benefits vulnerable communities and protects lifeline services.
The state government said it is committed to mobilise substantial resources for the initiative through state funding and investments by power utilities while it has also been exploring multilateral and development financing options.
“Considering the scale of investment required and the substantial public-good benefits arising from reduced disaster losses, protection of critical services and enhanced resilience of vulnerable communities, a financing gap remains for implementing the full resilience package,” noted the Odisha CM.
Odisha urged Centre to examine support for the initiative under the mitigation fund for eligible disaster mitigation components as “gap funding”, alongside state resources, utility investments and multilateral financing.
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According to the Detailed Project Report, out of the total Rs 9755 crore proposed for the project, Rs 3755 crore is targeted for transmission projects while Rs 6,000 crore is required for projects in the distribution sector.