Bhubaneswar, Sep 8 (IANS): Despite attracting massive investments in the power sector, power supply in Odisha has worsened over the years, industry lobby Assocham said here Monday.

With 12 per cent share, Odisha is second only to Gujarat in terms of new investments attracted by the power sector in the country, according to a study conducted by the Associated Chambers of Commerce and Industry of India (Assocham).

The condition of power supply, however, has worsened as power deficit in the state increased by 2.5 per cent during 2004-05 and 2012-13 mainly due to high growth in power demand as compared to power availability, the trade organisation said in a statement.

Another worrying aspect is that only 43 per cent households in the state have electricity facility, it said.

During 2012-13, Odisha attracted new investments worth over Rs.3,318 crore, of which the private sector accounted for the lion's share of 67 per cent against 33 per cent for the public sector, Assocham national general secretary D.S. Rawat said.

Though agriculture is the mainstay of Odisha's economy, the state is lagging in agriculture infrastructure development as it is ranked 19th in terms of power consumption growth in the farm sector, he said.

Rawat suggested the state government should lure private sector investment through a tax incentive scheme and facilitate quicker implementation of pending power projects to garner additional funds in the power sector.

Rawat said: "Private sector players should also be encouraged to invest in untapped regions having large potential for setting up power plants."

He added: "Efforts should also be made to promote power generation by tapping new and renewable energy sources like wind, hydro, bio-mass and solar."