ADB and India sign loan agreement for power distribution upgrade
India, Karnataka, Bengaluru: Asian Development Bank (ADB) and the Government of India have signed a $100 M loan agreement.
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India, Karnataka, Bengaluru: Asian Development Bank (ADB) and the Government of India have signed a $100 M loan agreement.
The loan will be utilised to modernise and upgrade the power distribution system in Bengaluru city in Karnataka.
The signatories to the Bengaluru Smart Energy Efficient Power Distribution Project were Dr. C. S. Mohapatra, Additional Secretary, Department of Economic Affairs in the Ministry of Finance who signed for the Government of India, and Mr. Hoe Yun Jeong, Officer-in-Charge of ADB’s India Resident Mission, who signed for ADB.
Beside the $100 Mn sovereign loan, ADB will provide a $90 M without sovereign guarantee loan for the project to Bangalore Electricity Supply Company Ltd (BESCOM), one of five state-owned distribution utilities in Karnataka.
After signing the loan agreement, Dr. Mohapatra stated that conversion of overhead distribution lines into underground cables will help build an energy-efficient distribution network, reduce technical and commercial losses and minimize electricity outage resulting from natural hazards such as cyclones and external disturbances to overhead lines.
In parallel to underground distribution cables, over 2,800 km of fibre optical cables will be installed to strengthen communication network. Moving about 7,200 km of underground distribution lines will help reduce technical and commercial losses by about 30 %.
The fibre optical cables will be used for smart metering systems, distribution automation system (DAS) in the distribution grid, and other communication networks. The project will install 1,700 automated ring main units adapted with a DAS to monitor and control the distribution line switchgears from the control centre.
The loan will strengthen the capacity of BESCOM in operation and maintenance of underground cabling, environment and social safeguards, financial management and commercial financing. Improved financial management capability will help BESCOM access domestic and international commercial financing market.
Source: T&D India