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ADB, India sign $132.8 million loan to strengthen Meghalaya’s power distribution

Updated: December 2, 2020 1:31 pm

The Asian Development Bank (ADB) and the Government of India today signed a $132.8 million loan to strengthen and modernize the distribution network and improve the quality of power supplied to households, industries, and businesses in India’s northeastern state of Meghalaya.

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 the Government of India, and Mr. 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 “24×7 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in the state suffer from frequent power interruptions due to overloaded distribution networks and substations that use outdated technology, resulting in high aggregate technical and commercial (AT&C) losses.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 of India and the state government of Meghalaya embarked on a joint 24×7 Power for All Meghalaya initiative to provide uninterrupted, quality, reliable, and affordable power supply to all electricity consumers.

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