From blackouts to benchmarks: The Odisha distribution turnaround
Among the most compelling examples of this transformation is the Odisha model, which has emerged as a benchmark for reform in recent years.
The scale of operations alone makes Odisha's turnaround a remarkable achievement. The State's electricity distribution network serves over 97.4 lakh customers across four discoms and spans a geographical area of 1,55,707 square kilometers—approximately 4.74 per cent of India's total landmass.
Unlike most private participation in power distribution, which has remained concentrated in urban centres, Odisha chose to extend reform to its rural heartland.
The decision to bring in a partner with a proven track record and the capacity to serve challenging geographies has paid off. Today, the entire state—urban and rural alike—benefits from improved reliability, efficiency, and service.
This wasn't Odisha's first attempt. Earlier efforts to privatise the sector didn't yield the desired results. But the State stayed the course, learned from experience, and chose a path that emphasized accountability, performance, and long-term commitment.
The result is a partnership model that has delivered both efficiency and equity.
In 2020, a major public-private partnership was initiated to revitalize the state's power distribution sector, and
Tata Power
—known for its successful discom operations in Mumbai and Delhi—was brought onboard.
At the time, the system was fragmented and struggling. The four government-run discoms—CESU, NESCO, WESCO, and SOUTHCO—were plagued by high AT&C losses, outdated infrastructure, frequent outages, and low customer satisfaction.
Previous attempts at privatisation had failed, and the sector was in urgent need of reform.
Between 2020 and 2021, the partnership led to the formation of four new entities: TPCODL for Central Odisha, TPSODL for Southern Odisha, TPWODL for Western Odisha, and TPNODL for Northern Odisha.
Parivartan to Pragati
To drive change, a comprehensive transformation programme was launched. This included a 10-module strategy focused on operational excellence, digital innovation, and workforce development.
The existing workforce was retained and retrained, and a planned investment of Rs 6,000 crore over five years was committed to upgrading infrastructure and services.
Smart grid technologies were introduced, and customer service was enhanced through the establishment of customer service centers across the State.
As of FY25, Odisha's discoms have reduced AT&C losses by approximately 13 per cent since the takeover. They have also earned A+ ratings from the Ministry of Power for FY24, placing them among the top-performing utilities in the country.
Beyond operational metrics, the transformation has had a meaningful social impact. Service reliability has improved in rural, tribal, and remote regions.
Consumers now benefit from digital billing and grievance redressal platforms, and local youth have gained access to skill-building and employment opportunities through regional training centres.
Odisha's journey stands as a quiet but powerful example of what sustained reform can achieve in India's power sector.
The consultative support of the Odisha Electricity Regulatory Commission (OERC) and Government of Odisha has been instrumental throughout this journey, and will continue to play a vital role as the discoms take on the gargantuan task of transforming not only urban centres but also deeply rural and tribal regions.
The success of the Odisha model offers a practical template for other states—one built on accountability, and a clear vision for inclusive progress.
(The author is a veteran energy expert with nearly four decades of experience in the coal and power sectors. He has held several key leadership positions, including Director (Finance) at NTPC Ltd., Director (Finance) & Chief (Finance) at the Central Electricity Regulatory Commission (CERC) at the level of Joint Secretary to the Government of India, and *Joint Director (Finance) at the Odisha Electricity Regulatory Commission (OERC). Leveraging his extensive expertise in energy, regulation, and finance, he is currently practicing as an Advocate and Consultant, specializing in regulatory and financial matters in the energy sector. He is also an active member of several industry bodies, including the Utkal Chamber of Commerce & Industries.)
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