Bhubaneswar, Dec. 20: Coal-based thermal plants and huge hydroelectric projects are causing environmental pollution in the state.

As this is also triggering socio-political problems, the state government has decided to form Green Energy Development Corporation (GEDC) to generate power using wind and solar energy.

The Odisha Hydro Power Corporation Ltd (OHPC) will take care of the new venture. The OHPC board had decided to tap the potential of unconventional sources and the small water-based power generation units.

Chief minister Naveen Patnaik declared the formation of GEDC at the inaugural session of the third Odisha Environment Congress (OEC) here today.

“Consumption of power is a known index of development all over the world, but we are paying the price for it and are in a dilemma. So we have decided to go for small hydroelectric projects so that there will be less threat to environment, forests and no problem with displacement of the people. We are also planning to generate wind and solar energy through GEDC,’’ Patnaik announced.

Minister of environment and forests Bijayshree Routray said with the world celebrating the year as sustainable energy for all, green energy formation would be on the agenda of the state government.

Talking to The Telegraph, energy secretary Pradip Jena explained as OHPC had excelled as a PSU with huge cash surplus, the state government hoped to channelise its resources and experience to form another company with three major objectives — producing more power through small hydro-electric, wind and solar power.’’