World Bank signs agreement with Jharkhand government for $310 million loan

To present affordable, reliable and 24×7 electricity to the citizens of Jharkhand, the state and the central government have announced that it has signed an agreement with the World Bank for a loan of $310 million.

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 loan has been given out by World Bank’s International Bank for Reconstruction and Development (IBRD), has a 5-year grace period, and a final maturity of 25 year.

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

While a considerable portion of the proposed investments are intended at improving power transmission infrastructure, the project will also focus on developing institutional capacities of state-owned power transmission and distribution companies and improving their operational performance.

The project is part of the Government of India’s Power for All program launched in 2014. The plan foresees addition of over 4.5 GW generation capacities by 2022 (with a noteworthy share of 1.5 GW from solar energy), through a mix of private and public-sector investments.

Some of the major components of the project include construction of new substations and transmission lines, primarily at 132kV voltage level; provide support to the Jharkhand Urja Sancharan Nigam Limited (JUSNL) in setting-up systems for strengthening the State Load Dispatch Centre (SLDC) operations including financing software solutions for improving scheduling and dispatch functions. This will help integrate renewable energy in the State grid.

Speaking on the occasion, Junaid Ahmad, World Bank Country Director in India said that “the Government of Jharkhand is devoted to providing quality power supply to its people for the state’s economic development.”