New Delhi (NVI): The government signed a USD 132.8 million loan agreement with the Asian Development Bank (ADB), to improve the quality of power and strengthen the power distribution network in India’s north-eastern state of Meghalaya.
The agreement was signed by CS Mohapatra, additional secretary, department of economic affairs and Takeo Konishi, country director of ADB’s India Resident Mission, the Ministry of Finance said in a statement.
Mohapatra said that the project supports the state government’s ’24×7 Power for All’ initiative and will help the state reduce its high technical and commercial losses through network strengthening, metering and billing efficiency improvements.
Although Meghalaya has achieved 100 per cent electrification, remote rural areas in the state suffer from frequent power interruptions due to overloaded distribution networks and substations that use outdated technology, resulting in high aggregate technical and commercial (AT&C) losses, the statement said.
In addition, the Central government and the Meghalaya government embarked on a joint 24×7 power in the state for all initiative to provide uninterrupted, quality, reliable, and affordable power supply to all electricity consumers.
The ministry also informed that, the Meghalaya Power Distribution Sector Improvement project will construct some 23 substation and 45 substations will be renovated and modernized, including the provision of control room equipment and protection systems.
It will install and upgrade 2,214 kilometers of distribution lines and associated facilities covering three out of the six circles in the state. However, the installation of smart meters will benefit about 180,000 households.
Takeo Konishi also said that, “Technological Improvements to the distribution network adapted to extreme weather, introduction of smart meters and online meter reading, billing, and collection systems will help improve operational efficiencies and financial sustainability of the state’s distribution system.”
Furthermore, the loan is proposed to be supplemented by a USD 2 million grant from ADB’s Japan Fund for Poverty Reduction that will finance renewable energy mini-grids for improving power quality and supporting income generation activities, especially for women and other socially disadvantaged groups, the statement read.
The project will also develop a distribution sector road map and a financial road map for the Meghalaya Power Distribution Corporation Limited (MePDCL).
These road maps will further strengthen the capacity of MePDCL to operate and manage the distribution networks, it said.
Established in 1966 is owned by 68 members—49 from the region, ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty, the ministry noted.
-RJV
