The Odisha government has amended its Thermal Power Policy, significantly reducing the state's entitlement to low-cost electricity from upcoming Independent Power Producer (IPP) thermal projects from 12-14% to just 5%. This decision, framed as a move to attract investment, has drawn sharp criticism from energy experts who argue it undermines the state's energy security and public interest. Power analyst Anand Mohapatra highlighted that this reduction translates to a loss of 7-9% of assured low-cost electricity, which could lead to higher procurement costs in the future as demand rises, particularly from industries like steel and aluminum.

Critics note that Odisha provides essential resources such as coal and water to private companies while bearing the environmental costs associated with thermal power generation, including pollution and ecological damage. Despite the state's history of maintaining a power surplus, the new policy could negatively impact consumers and industries by increasing electricity costs.

Officials defend the amendment, stating it aligns with current market realities and aims to balance investor confidence with the state's developmental needs. They emphasize the importance of creating an enabling environment for investment to ensure long-term power availability and economic growth in Odisha.