World Bank to support Haryana power projects

Haryana Government has successfully concluded negotiations with the World Bank at Delhi for a $330 million loan to support one of its power sector projects namely Haryana Power System Development Project which will go a long way in strengthening the transmission and distribution system in the State.

While giving this information here today, the Haryana Chief Minister, Bhupinder Singh Hooda stated that the state had taken rapid strides in adding to its power generation capacity with the Rajiv Gandhi Thermal Power Plant at Khedar of Hisar district and Indira Gandhi Thermal Power Plant at Jhajjar. 

Another power project at Jhajjar would add 1320 Mw and together with long term power purchase agreement on tariff based competitive bidding signed for 2000 Mw of supply; the State would get 5000 Mw of additional capacity in the next four to five years.

Hooda said that there was a need to strengthen the transmission and distribution system to handle this increased power supply.

The loan from World Bank would be used for 400/220/132 KV sub stations and transmission lines across the State. Distribution system would be strengthened by the Dakshin Haryana Bijli Vitran Nigam with conversion of feeders to HVDS, bifurcation of overloaded feeders, construction of 33 KV sub stations and advance metering of industrial consumers with load of 10 Kw and above.

He said that most importantly, the finalization of this project reflects the confidence and support of the World Bank for the efforts of the Haryana Government in the development of power sector in the state.

"Lessons from this engagement (World Bank with Haryana) will be useful for other States in India", says the Project Appraisal Document. The Board of the World Bank will take up the loan for approval on August 6, 2009 in Washington DC.

The loan is beneficial for Haryana as it carries low rate of interest with tenor of 30 years procurement process has already started and the entire amount of World Bank loan will be disbursed by 2013-14.