State energy secretary TK Mishra told The Financial Express that 72 per cent of the total 50,972 villages in Orissa have already been electrified. Of the Rs 106 crore needed to cover the remaining villages, the state government is going to provide Rs 20 crore and the remaining Rs 86 crore would be availed of from the Rural Electrification Corporation (REC). The Orissa government would stand guarantee for the loan.

Recently, the Orissa government had a discussion with the REC chairman about the financial tie-up during the latter's visit to the state. The REC chief reportedly assured the state that there would be no delay in funding the projects.

Orissa chief minister Giridhar Gamang at a meeting last week directed the Gridco officials to complete the rural electrification work by the year 2000. He emphasised on electrification of thevillages in Koraput, Bolangir and Kalahandi districts. Gamang reportedly assured the Gridco officials that the state government would release the required funds on time.

If Orissa achieves 100 per cent rural electrification by March 2000 the project will be completed two years ahead of schedule since the target for completion was March 2004. In fact, the rural electrification programme in Orissa slowed down due to non-availability of loans from the REC. The poor financial condition of the erstwhile Orissa State Electricity Board (OSEB) was the cause of non availability of loans. This held up the rural electrification programme.

Due to paucity of funds, only 2354 villages could be electrified during the years 1995-96 to 1997-98. However, in 1998-99, the state government arranged a Rs 50 crore loan from the REC and launched a programme to electrify 2000 villages during the year.