The Manila-based multilateral financial institution, Asian Development Bank (ADB), will provide a loan of USD 562.8 million (about Rs 4,143 crore) for power projects in Uttar Pradesh .
The ADB has approved a USD 430-million multi-tranche financing facility (MFF) to improve the quality and reliability of power supply in Uttar Pradesh.
The Uttar Pradesh Power Distribution Network Rehabilitation Project will improve the efficiency and sustainability of power supply in the state. The project is estimated to benefit seven crore people in 46,000 villages.
It will also finance the construction of a parallel network of 11-kilovolt feeders with a total length of 17,000 km to separate the distribution of electricity between residential consumers and agriculture consumers.
This will facilitate the use of solar energy to meet the demand of agriculture, increase in electricity supply duration to rural residential consumers, and energy and water conservation. In addition, the project will improve gender inclusivity, corporate governance and financial management capacity of Uttar Pradesh Power Corporation Limited (UPPCL).
UPPCL sources said, “Reliable and sustainable power distribution and service is an important aspect to India’s growth and development. This project fully supports the Power for All vision of Prime Minister Narendra Modi in a sustainable and inclusive way,”
The existing rural power distribution networks will be upgraded to enable the provision of reliable supply to customers in rural Uttar Pradesh in a financially sustainable manner.