World Bank to provide USD 310 mn loan for Jharkhand power system

The World Bank will extend USD 310 million loan for Jharkhand Power System Improvement Project to provide reliable, quality, and affordable 24x7 electricity in the state.

An agreement in this regard was signed here between the Centre, Jharkhand government and World Bank.

"The Jharkhand Power System Improvement Project will help build new power transmission infrastructure, as well as put in place systems to improve the technical efficiency and commercial performance of the state power sector utilities," the release said.

The project will help bring in modern technology solutions such as automated sub-stations, and network analysis and planning tools to provide reliable power supply and enhance customer satisfaction.

The project is part of the government's power for all programme launched in 2014.

The plan envisages addition of over 4.5 GW generation capacities by 2022 (including a significant share of 1.5 GW from solar energy) through a mix of private and public-sector investments.

The release further said that as per data from Jharkhand Distribution Company, more than 80 per cent of people in the state have access to electricity.

"However, the state will have to continue to work towards providing reliable 24x7 power for all its consumers," it added.

The per capita consumption of electricity in Jharkhand at 552 kWh at the end of 2015-16 is roughly half of the national average.

Improved availability of power in the region from plants owned by the central government and Independent Power Producers (IPPs) has helped the state achieve lower demand supply deficits in recent years.

The USD 310 million loan from the International Bank for Reconstruction and Development (IBRD), has a 5-year grace period, and a final maturity of 25 years.