The Government of India, the Government of Jharkhand and the World Bank signed a $310 million Loan Agreement for Jharkhand Power System Improvement Project to provide reliable, quality, and affordable 24x7 electricity to the citizens of Jharkhand, in New Delhi on Tuseday.
The Jharkhand Power System Improvement Project will help build new power transmission infrastructure, as well as put in place systems to improve the technical efficiency and commercial performance of the state power sector utilities. The Project will help bring in modern technology solutions such as automated sub-stations, and network analysis and planning tools to provide reliable power supply and enhance customer satisfaction.
While a significant portion of the proposed investments are aimed at improving power transmission infrastructure, the project will also focus on developing institutional capacities of state-owned power transmission and distribution companies and improving their operational performance.
The Agreement for the Project was signed by Sameer Kumar Khare, Additional Secretary, Department of Economic Affairs, Ministry of Finance, on behalf of the Government of India; Vandana Dadel, Secretary, Energy Department, on behalf of the Government of Jharkhand; and Junaid Ahmad, Country Director, World Bank India, on behalf of the World Bank.
After signing the Agreement, the Additional Secretary, DEA said that Jharkhand was one of the first state to join the Power for All plan and is making efforts to improve access to power through reforms in transmission and electricity distribution. He further said that with the demand for reliable power expected to almost double in the coming years, the project will help meet the energy needs of the State for its economic growth.
Speaking on the occasion, Junaid Ahmad, World Bank Country Director in India said that the Government of Jharkhand is committed to providing quality power supply to its people for the State’s economic development. This project will help the State increase supply of reliable electricity to households, industries, businesses and various other productive sectors, and contribute to poverty alleviation, and inclusive growth in Jharkhand.
Some of the major components of the project include construction of new substations and transmission lines, primarily at 132kV voltage level; provide support to the Jharkhand Urja Sancharan Nigam Limited (JUSNL) in setting-up systems for strengthening the State Load Dispatch Centre (SLDC) operations including financing software solutions for improving scheduling and dispatch functions. This will help integrate renewable energy in the State grid.
The Project will also support smart meters, with two-way communication and backend IT infrastructure, deployed in select urban towns. These meters will not only reduce technical and commercial losses, but also improve peak load management. The meters are expected to provide consumers with better access to data which will encourage them to reduce their electricity consumption. To begin with, the Project will finance smart metering for around 350,000 consumers in the capital city of Ranchi.
The $310 million loan from the International Bank for Reconstruction and Development (IBRD), has a 5-year grace period, and a final maturity of 25 years.
