The loan will come from the World Bank’s member institution, the International Bank for Reconstruction and Development (IBRD).
The Hindu Business Line states that the project is the first in India co-financed by the Asian Infrastructure Investment Bank (AIIB).
Last week, the World Bank Board approved the loan that faciliate the new build of transmission and distribution infrastructure, as well as put in place systems to improve the technical efficiency and commercial performance of the state power sector utilities.
The bulk of the investment will be directed toward improving power supply in rural areas, a portion of which has also been earmarked for the deployment of smart grids in selected towns.
These efforts are part of the Indian government’s Power for All programme launched in 2014, with Andhra Pradesh being one the first states to roll out the programme.
Junaid Ahmad, World Bank Country Director in India, said in a statement: “By increasing the supply of reliable electricity to households, industries, businesses and various other productive sectors, the project will contribute to economic development, poverty alleviation, and inclusive growth in Andhra Pradesh.”
The project is also aimed at strengthening the intra-state transmission and distribution network, bring down transmission losses and set up a High Voltage Distribution System in selected rural areas.
The investments in transmission and distribution infrastructure will also support smart consumer meters, with two-way communication and backend IT infrastructure, deployed in select urban towns.
Mani Khurana, senior Energy Specialist and World Bank’s Task Team Leader for the project, added: “The smart grid interventions under the project will demonstrate positive impacts on reliability and network management which can inform the design of similar projects in other states.”
Sweden and India energy collaboration
In other news, Sweden’s Deputy Minister of Environment and Climate Change Eva Svedling visited India’s Maharashtra state to discuss climate policy and sustainable environmental solutions.
Svedling said: “Sweden and Swedish businesses are ready to work with India on the important transformation taking place, when it comes to smart and healthy cities, renewable energy and more.” Read more…
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