Bhubaneswar, Oct. 6: The power distribution system across the state is all set to be revamped with an investment of Rs 2,400 crore.

The power distribution companies have agreed to provide half of the amount.

“We were the first state to introduce reforms in the power sector in the 90s. More funds are now required to improve the existing infrastructure for providing quality power to people. Most of the transmission lines have become old,” said chief secretary Bijay Patnaik adding that the state cabinet yesterday took a decision to make fresh investments in the power sector.

Patnaik said that power distribution companies could avail of loans at an interest rate of four per cent to provide their share of investment. “At present, our transmission and distribution (T&D) losses are pegged at 39 per cent. If the distribution companies are able to minimise their losses by three per cent every year, the loan would be converted to grant,” he said.

The Central Electrical Supply Utility (Cesu), which looks after power distribution system along the coastal belt, would receive 39 per cent of the amount to be invested by the distribution companies as loan. The Western Electricity Supply Company of Orissa (Wesco) would get 19.5 per cent, the North Eastern Electricity Supply Company of Orissa (Nesco) 21 per cent and the Southern Electricity Supply Company Of Orissa (Southco) 20.5 per cent.

The state has 84,000km transmission lines of which nearly 62,000km lines are more than 40 years old and need to be replaced. Sources said an estimated Rs 2,000 crore are required for upgrading the transmission system by 2014-15. The state also needs Rs 3,400 crore for strengthening distribution network by that year.