The Asian Development Bank (ADB) has approved a $562.8 million loan to improve the quality and reliability of electricity supply in the Indian states of Uttar Pradesh and Meghalaya.
The $430 million approved for Uttar Pradesh, under the multi-tranche financing facility, will be used to convert 65,000 kilometers (km) of rural low-voltage distribution lines from bare conductors to aerial bundle conductors under the Uttar Pradesh Power Distribution Network Rehabilitation Project, benefitting an estimated 70 million people in 46,000 rural villages.
The amount will also finance the construction of a parallel network of 11-kilovolt feeders with a total length of 17,000 km to separate electricity distribution between residential consumers and agriculture consumers. This will facilitate solar energy use to meet the agricultural demand, increase in electricity supply duration to rural residential consumers, and energy and water conservation.
The loan is complemented by a $2 million technical assistance (TA) grant from ADB’s TA Special Fund and the Japan Fund for Poverty Reduction to strengthen the gender inclusivity and institutional capacity building of Uttar Pradesh power sector.
The $132.8 million loan for Meghalaya will be used to 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. Smart meters will be installed to benefit about 180,000 households.
The loan will be supplemented by a $2 million grant from ADB’s Japan Fund for Poverty Reduction that will finance renewable energy mini-grids that will improve power quality and support income generation activities, especially for women and other socially disadvantaged groups in three villages and three schools.
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