World Bank to lend $310 million to improve power transmission infrastructure in Jharkhand

NEW DELHI: The Central and the state government on November 20 signed an agreement with the World Bank to advance a loan of $310 million to improve the transmission infrastructure in order to boost the state’s power system.

The Ministry of Finance in a statement said, “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 is a part of the central government’s ‘Power for All’ program which was launched in 2014.

According to the statement, this project in order to provide reliable power supply will bring in modern technology solutions such as automated sub-stations, network analysis and planning tools.

The deal was signed by Sameer Kumar Khare, Additional Secretary of Union Finance Ministry, Vandana Dadel, Secretary of Jharkhand Energy Department and World Bank India Country Director Junaid Ahmad.

Sameer Khare said that as demand for dependable power is expected to be almost double in coming years, this project would help to meet Jharkhand’s energy needs for its economic growth.

Junaid Ahmad said that the project will also be able to increase supply of reliable electricity to households, industries and businesses, and contribute to poverty alleviation and inclusive growth.

The statement stated that at present there is more than 80 per cent of the state’s population which has access to electricity and the per capita power consumption in Jharkhand at 552 kWh at the end of financial year 2015-16 is roughly half of the national average.

However, in recent years, the state has achieved lower supply deficits.

The project also includes construction of new sub-stations and transmission lines, smart meters, IT infrastructure. To start with, the project will sponsor smart metering for around 350,000 consumers in the capital city Ranchi, the Ministry said.

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, Ministry added.