ADB loan to strengthen the distribution network
The Meghalaya Power Distribution Sector Improvement Project will involve technological improvement to the distribution network and online meter reading to improve operational efficiencies under an Asian Development Bank loan of US$132.8 million signed on 1 Dec 2020.
“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,” said Takeo Konishi, Country Director of ADB’s India Resident Mission who signed the loan for ADB.
The loan is to strengthen and modernize with technologies the distribution network and improve the quality of power supplied to households, industries, and businesses in India’s northeastern state of Meghalaya.
The ADB-funded 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.
Though Meghalaya has achieved 100% 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in the state suffer from frequent power interruptions due to overloaded distribution networks and substations that use outdated technology, resulting in high aggregate technical and commercial (AT&C) losses, Dr. C. S. Mohapatra, Additional Secretary (Fund Bank & ADB), Department of Economic Affairs said after signing the loan for India.
The Government and Meghalaya Government have embarked on a joint 24×7 Power for “All Meghalaya” initiative to provide uninterrupted, quality, reliable, and affordable power supply to all electricity consumers.
The project will construct 23 substations; renovate and modernize 45 substations, including the provision of control room equipment and protection systems; install and upgrade 2,214 kilometers of distribution lines and associated facilities covering three out of the six circles in the state. Installation of smart meters will benefit about 180,000 households.
The loan is proposed to be supplemented by a US$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 in three villages and three schools.
The project will help develop a distribution sector road map and a financial road map for the Meghalaya Power Distribution Corporation Limited (MePDCL). These road maps will strengthen the capacity of MePDCL to operate and manage the distribution networks, said the Finance Ministry.
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