From Blackouts to Breakthroughs: Odisha's Remarkable Distribution Turnaround

20 Aug 2025

Private sector involvement in electricity distribution can greatly enhance service efficiency, reliability, and the financial stability of distribution companies (discoms). A standout example of this transformation is the Odisha model, which has emerged as a leading 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 kilometres—approximately 4.74% of India’s total landmass.

Unlike the typical trend where private participation in power distribution is limited to urban areas, Odisha made the bold decision to extend these reforms into its rural heartland. Bringing in a partner with a proven track record and the ability to navigate challenging geographies has proven to be a wise decision. Today, both urban and rural areas across the entire state enjoy enhanced reliability, efficiency, and service.

This wasn’t Odisha’s first attempt at privatisation. Previous efforts had not achieved the desired outcomes. However, the state remained resolute, learnt from past experiences, and adopted a strategy focused on accountability, performance, and long-term sustainability. The outcome is a partnership model that fosters both efficiency and equity.