The bank for regional development, Asian Development Bank (ADB) on 29th April approved a loan of around Rs 2,616 Crore to India for proving efficient and reliable power connections in rural Maharashtra.
The loan will help Government of Maharashtra support the state’s Rural High Voltage Distribution System (HVDS) expansion program meant to connect rural agricultural customers across the state through new grid connections.
Details of Maharashtra’s ADB Funded HVDS Program
Maharashtra Rural High Voltage Distribution System Expansion Program will be implemented by Maharashtra Energy Department and Maharashtra State Electricity Distribution Company Limited (MSEDCL). Total cost of the program is around Rs. 5,322 Crore out of which around Rs. 2,706 crore will be managed by Government of Maharashtra and MSEDCL.
The loan from ADB shall be used for construction and installation of metered HVDS, installation of about 46,800 Km of 11 KV grid extension lines, construction and upgrading of 121 33/11 KV distribution substations.
Loan Disbursement Mode
The loan by ADB is on the results-based lending (RBL) mode. As per ADB’s press release dtd. 19th September 2019, “RBL is a results-based form of financing in which fund disbursements are linked to the achievement of agreed program results rather than to expenditures”.
Maharashtra is the second most populated state of India and third-largest by area. Also as mentioned in ADB press release dtd. 29th April 2020 “About half of the state’s labour force is engaged in agriculture and related activities in the rural areas”.
In same press release Len George, ADB Senior Energy Specialist said, “Providing efficient, reliable, and good quality power to rural agriculture customers in Maharashtra will improve agricultural productivity and efficiency in the electricity value chain”.
About ADB: It is a regional development bank, established in 1966 with headquarters in Metro Manila, Philippines, and has 31 field offices around the globe. ADB helps developing Asian countries meet their energy security needs & facilitate transition to a low-carbon economy.