The Asian Development Bank has agreed to support the Uttar Pradesh Power Distribution Network Rehabilitation Project in India.
The bank has approved a $430m multitranche financing facility to improve the quality and reliability of electricity supply in the state.
Asian Development Bank South Asia principal energy specialist Pradeep Perera said: “Reliable and sustainable power distribution and service is an important aspect to India’s growth and development.
“This project fully supports the government of India’s vision of ‘Power for All’ in a sustainable and inclusive way in the largest and one of the poorest states in India.
“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.”
As part of the rehabilitation project, around 65,000km of rural low-voltage distribution lines will be converted to aerial bundle conductors. Project heads believe this will benefit nearly 70 million people in 46,000 rural villages.
The project will also involve the construction of a parallel network of 11kV feeders spanning 17,000km. These will split electricity distribution between residential consumers and agriculture consumers. Additionally, the lines will improve the finances of the Uttar Pradesh Power Corporation.
A parallel network will facilitate solar power usage to meet agricultural demand, as well as improve electricity supply duration to rural residential consumers and energy and water conservation.
The Development Bank will also offer a $2m technical assistance grant through its Technical Assistance Special Fund and the Japan Fund for Poverty Reduction. This aims to improve gender inclusivity and institutional capacity building of the Uttar Pradesh energy sector.