To upgrade the energy sector of Madhya Pradesh by equipping it with modern technology, the Energy Department signed a contract with KFW Development Bank Germany for loan and grant. Vivek Porwal, the Energy Secretary and Managing Director of MP Power Management Company, Rajiv Keskar, Director Commercial on behalf of MP Power Management Company and Hemant Bhatnagar as the representative of the Bank signed on the contract forms at the Regional Office of Power Management Company in Bhopal.

Separate loan agreements, separate grant contracts and projects contracts were signed for funding of Rs 1400 crore for the proposed various development works in the three power distribution companies of the state.

Energy Minister Pradyuman Singh Tomar informed that KFW Development Bank will give a loan of Rs 1120 crore in this mega scheme. The government will make available the remaining amount of Rs 280 crore in this scheme to the Energy Department.

With these efforts of power reform, works like smart metering, feeder separation can be done in the working areas of Madhya Pradesh East Zone Power Distribution Company, Central Zone Electricity Distribution Company and West Zone Power Distribution Company.

It is noteworthy that the Ministry of Finance, Government of India had signed a loan agreement and grant agreement with K.F.W. Development Bank Germany on 23 December 2021.

The Madhya Pradesh government is trying to strengthen the power sector of the state on the basis of this contract.