OPGC achieves successful completion of major renovation & modernization of Unit-1; PPA is extended until 2041

IB Thermal/Bhubaneswar, 23.05.2026: The Odisha Power Generation Corporation Ltd. (OPGC) has announced the successful completion of the major Renovation and Modernization (R&M) works for its Stage I (2X210MW) generating units, marking a critical milestone in the state’s power infrastructure sustainability.

Following the extensive overhaul, Unit 1 was officially synchronized with the grid on May 1, 2026, company officials confirmed that the unit is currently operating at full load capacity and exhibiting significantly improved in performance levels. Unit-2 R&M works was completed last year, in March 2025.

The Stage-I facility, located at the IB Thermal Power Station, comprises two 210 MW units, that were originally commissioned in 1994 and 1996, respectively. Having delivered over 30 years of continuous service, the aging assets required vital engineering interventions to sustain long-term operational efficiency. Executed with the formal consent of the power off-taker and regulatory approval from the Odisha Electricity Regulatory Commission (OERC), the technical overhaul involved heavy component replacement and system-wide technological upgrades.

Major R&M works included (a) Steam Turbine HP & IP modules replacement/refurbishment including LP Turbine last three stages blades replacement (b) Air Pre-Heater replacement (c) Extensive inspection and repair of boilers and their core auxiliaries, (d) Electrical and Control system upgrade as per requirement to address obsolescence (e) Major hardware replacement across the Electrostatic Precipitators (ESP) and flue gas ducts etc.

Beyond the mechanical revitalization, the project has secured a long-term regulatory asset lifeline. The Power Purchase Agreement (PPA) governing the Stage I units, which was originally slated to expire on June 30, 2026, has officially been extended for an additional 15 years.

Under the newly approved terms, the PPA will remain valid until June 30, 2041, guaranteeing prolonged grid stability and reliable energy supply to the state of Odisha for nearly two decades to come.

This is to be noted here that OPGC is currently having an installed capacity of 1740MW and it is currently meeting one third of energy demand of the state.