Bhubaneswar: Recurring climate-related disasters are posing an increasing threat to Odisha’s finances and critical infrastructure, with floods and tropical cyclones emerging as the biggest risk factors, according to a study conducted by the Coalition for Disaster Resilient Infrastructure (CDRI).The study, which assessed the fiscal impact of disasters on Odisha’s power and transport sectors, found that extreme weather events have caused substantial economic losses and continue to strain govt finances despite the state’s reputation for effective disaster management.According to the report, Odisha suffered an estimated economic loss of around Rs 24,400 crore between 2014 and 2021 due to disasters, equivalent to nearly 3.8% of the state’s gross domestic product.CDRI is a global multi-stakeholder partnership that promotes climate- and disaster-resilient infrastructure systems. It was launched by PM Narendra Modi in 2019 at the UN Climate Action Summit.The study noted that the state remains highly vulnerable to tropical cyclones, floods and other climate-related hazards, with a significant proportion of severe cyclonic storms striking India’s east coast affecting Odisha.The report highlighted extensive damage to power infrastructure and road networks during major cyclones such as Phailin, Hudhud, Titli, Fani and Yaas. It warned that the financial burden of restoring the damaged infrastructure often exceeds the resources immediately available through existing disaster relief mechanisms.Using fiscal modelling, the study estimated that a disaster on the scale of the 1999 Super Cyclone could lead to a sharp rise in govt expenditure and borrowing requirements. Even an event comparable to Cyclone Fani would significantly increase state spending on relief, rehabilitation and reconstruction, it observed.The assessment found that current disaster relief funds are inadequate to meet the long-term recovery and reconstruction costs arising from large-scale disasters. As a result, the state frequently depends on additional assistance, budget reallocations and borrowing to bridge funding gaps.The report also projected that climate change could further increase annual losses in key sectors, particularly energy and transport infrastructure. “The state is building disaster resilient infrastructure, but the frequency of natural disaster poses a significant threat to it,” climate expert Sarat Sahu said.Among its recommendations, the study called for the creation of dedicated resilience funds, greater investment in disaster-resilient infrastructure, improved risk financing mechanisms and wider use of insurance-based solutions. It also suggested exploring innovative financial instruments such as catastrophe bonds and contingent credit facilities.The study concluded that while Odisha has made significant progress in disaster preparedness and response, strengthening financial resilience will be crucial to protect development gains and withstand the growing impact of climate-induced disasters.“We will analyse the recommendations,” a revenue and disaster management official said.