Bhubaneswar, Dec 10 (PTI) A Memorandum of Understanding was signed between the Odisha Power Transmission Corporation Ltd and NABARD for development of power infrastructure in the eastern state, officials said.

Under the agreement, NABARD has extended a loan of Rs 1,685.27 crore to OPTCL.

“Today in Bhubaneswar, I witnessed the signing of a landmark MoU between OPTCL and NABARD – the first-ever project financing by NABARD to any State PSU in Odisha. Through this strategic financial partnership, NABARD has extended a long-term loan... at a reduced interest rate of 7.75 per cent per annum,” Deputy Chief Minister K V Singh Deo said in a post on X.

Singh Deo, who is also in-charge of the energy department, was present at the signing of the MoU.

He said out of the total amount, Rs 900 crore will be invested in new transmission projects, while the rest will be used to swap high-cost loans.

This collaboration will accelerate the development of critical transmission infrastructure, ensuring reliable and quality power supply for industries and consumers alike, and strengthening Odisha’s economic growth story, the Deputy CM said. PTI AAM RBT

OPTCL and NABARD agreement secures a long-term loan to fund new transmission projects and refinance costly debt. NABARD extended a long-term loan of Rs 1,685.27 crore to OPTCL at a reduced interest rate of 7.75% per annum, with about Rs 900 crore allocated to new transmission projects and the remainder to swap higher-cost loans, constituting NABARD's first project financing to a State PSU in Odisha.