India, ADB sign USD 300 million loan to upgrade power distribution network in Uttar Pradesh: Quick Highlights 

India, ADB sign USD 300 million loan to upgrade power distribution network in Uttar Pradesh: Quick Highlights 

The Asian Development Bank (ADB) and the Government of India signed a $300 million loan to upgrade rural power distribution networks to provide reliable electricity supply to consumers in the state of Uttar Pradesh.

The MoU Signed by

The signatories to the tranche 1 loan for Uttar Pradesh Power Distribution Network Rehabilitation 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. Takeo Konishi, Country Director of ADB’s India Resident Mission who signed for ADB.

Benefits -  Quick Highlights 

The project will establish separate feeders for electricity supply to agriculture and residential consumers to promote better rationing and utilization of unmetered power; strengthen financial management of the state power distribution entity and improve bill collection in rural areas through community engagement involving the women’s self-help groups.

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Overall, the $430 million multi-tranche financing facility (MFF) approved for the project constituting two tranches, envisages conversion of 65,000 kilometers (km) of rural low-voltage distribution lines from bare conductors to aerial bundle conductors (ABC) to create a robust distribution network that will benefit an estimated 70 million people in 46,000 villages. The feeder separation network to be established over 17,000 km for agriculture and domestic consumers will facilitate the use of solar energy to meet the agriculture demand, increase in electricity supply duration to rural residential consumers, and energy and water conservation. In addition, the project will improve the gender inclusivity, corporate governance, and financial management capacity of Uttar Pradesh Power Corporation Limited (UPPCL).