New Delhi, May 15 (IANS): The government on Friday entered into a loan agreement for Rs.1,150 crore with Japan International Cooperation Agency (JICA) to augment power transmission infrastructure in Odisha.

"Availability of affordable and stable power is one of the prerequisites to realising the growth potential of a region, and is intertwined with enhancing the pace of socio-economic development and quality of life," Shinya Ejima, chief representative, JICA India was quoted in a statement.

"The augmentation of the transmission system in Odisha will contribute towards the endeavor of providing 24x7 electricity to industrial, agricultural, commercial and household consumers," said Ejima.

According to the agreement, the loan assistance will provide for substations and transmission lines across Odisha to enhance the stability of power system and reliability of power supply and reduce transmission loss in the state with increasing electricity demand due to rapid economic growth.

JICA said that as a consequence of economic growth of Odisha the installed power generation capacity is expected to increase from 5,511 MW in 2014-15 to 10,932 MW by 2021-22.

The increased power generation said JICA will require the development of power transmission network that deliver the generated electricity.

Under the loan agreement, the civil works would be carried out by Odisha Power Transmission Corporation and will be completed in phases by 2020.

"From the view point of disaster prevention, it is planned to install substations in this project that are resistant to natural disasters," the statement said.

Since 1981 JICA has extended Rs.3,400 crore in ODA (official development assistance) loans all-round development in Odisha. JICA has also extended Rs.65,260 crore) in ODA loans since 1958 for enhancement of power generation and transmission infrastructure in India.