Odisha Extends State Support of Up to ₹4.95 Billion for PM Surya Ghar Program
The government has earmarked ₹8 billion for strengthening the power distribution system
February 26, 2026
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The Odisha government has announced additional state support of up to ₹4.95 billion (~$54.445 million) to accelerate the growth of rooftop solar projects under the PM Surya Ghar: Muft Bijli Yojana in the 2026-27 state budget.
The state-backed capital support for the Surya Ghar program will be disbursed through the Odisha Akshaya Shakti Bikash Yojana (OASBY).
Under the OASBY program, ₹2 billion (~$21.99 million) has been provided for the development of green hydrogen and green ammonia projects.
Prioritizing power generation and modernizing transformer distribution networks, the Odisha government announced an energy-sector budget with an outlay of ₹45.05 billion (~$495.49 million).
Under the Mukhya Mantri Shakti Bikash Yojana, the government has allocated ₹8 billion (~$87.991 million) for the Odisha Distribution System Strengthening project and has earmarked ₹2.49 billion (~$27.39 million) for the green energy evacuation and transmission corridor project.
The budget has also proposed an additional ₹5.5 billion (~$60.49 million) to strengthen and future-proof the high-voltage transmission network.
The state’s efforts to strengthen grid infrastructure align with its targets to increase renewable energy additions.
According to the Odisha Vision 2036 and 2047 report, the Odisha government aims to meet 33% of its power needs from renewable energy sources by 2036 and 50% by 2047.
Odisha plans to add 21,000 MW of generation capacity by 2047, with over 70% to 75% of this capacity coming from renewable energy sources, including solar, wind, round-the-clock renewables, and advanced storage solutions.
The state’s current installed renewable energy capacity is 10% of the total installed power capacity. Odisha aims to generate 55% of the state’s total energy from renewable sources. To achieve this goal, the state plans to mobilize between ₹1.8 trillion (~$21 billion) and ₹2 trillion (~$23 billion) through tailored incentives and policies.
In the same year, Odisha’s Energy Department released the ‘Odisha Pumped Storage Projects (PSP) Policy’, identifying 45 potential PSP sites for implementation. Such PSPs will be considered state-identified sites. Through this policy, the state aims to promote the development of pumped storage hydro projects and facilitate the smooth integration of renewable energy into the grid.
