Shillong, Dec 2: With an aim to enhance and modernize the distribution network and improve the quality of power supplied to households, industries, and businesses in Meghalaya, the Asian Development Bank (ADB) and the central government signed a $132.8 million loan.

 

Power Minister James PK Sangma said in a tweet," "Happy to announce that the @ADB_HQ has approved a loan of $132.8 mn to improve & upgrade the power distribution network in #Meghalaya. The project fully supports Meghalaya's initiative in improving the distribution system & financial sustainability of the Department."

 

In August, the Meghalaya cabinet had approved a proposal from the Meghalaya Energy Corporation Limited (MeECL) to avail a Rs 1,345.72 crore loan for clearing the power outstanding dues, on conditions that it has to bring down the aggregate technical and commercial (AT&C) losses and reduce the gap of average cost of supply (ACS) and average revenue realized (ARR).

 

The Meghalaya Power Distribution Corporation Limited (MePDCL) has a huge outstanding against the power purchased from central power generating stations and to the Power Grid Corporation of India Limited (PGCIL), the minister had said. The project will help develop a distribution sector road map and a financial road map for MePDCL. These road maps will strengthen the capacity of MePDCL to operate and manage the distribution networks.

 

The signatories to the Meghalaya Power Distribution Sector Improvement Project were Dr. C. S. Mohapatra, Additional Secretary (Fund Bank & ADB), Department of Economic Affairs in the Ministry of Finance who signed for India, and Takeo Konishi, Country Director of ADB’s India Resident Mission who signed for ADB.

 

After signing the loan agreement, Dr Mohapatra stated that the project supports the state government’s "24x7 Power for All" initiative and will help the state reduce its high technical and commercial losses through network strengthening, metering and billing efficiency improvements.

 

“Technological Improvements to the distribution network adapted to extreme weather, introduction of smart meters and online meter reading, billing, and collection systems will help improve operational efficiencies and financial sustainability of the state’s distribution system,” said Mr. Konishi.

 

Though Meghalaya has achieved 100% electrification, remote rural areas in the state suffer from frequent power interruptions due to overloaded distribution networks and substations that use outdated technology, resulting in high aggregate technical and commercial (AT&C) losses. The government and the state government of Meghalaya embarked on a joint 24x7 Power for All Meghalaya initiative to provide uninterrupted, quality, reliable, and affordable power supply to all electricity consumers.

 

The project will 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. Installation of smart meters will benefit about 180,000 households. The loan is proposed to be supplemented by a $2 million grant from ADB’s Japan Fund for Poverty Reduction that will finance renewable energy mini-grids for improving power quality and supporting income generation activities, especially for women and other socially disadvantaged groups in three villages and three schools.