The International Bank for Reconstruction and Development (IBRD) has announced that it will extend a $310 million loan for India’s Jharkhand Power System Improvement Project. This project is intended to provide reliable and affordable electricity 24/7 for the state. An agreement regarding the loan was signed between the Indian Government, Jharkhand’s State Government, and the World Bank. The project is part of the Indian Government’s Power for All programme launched in 2014.
A spokesman for the Jharkhand Government said: “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 project will introduce automated sub-stations, along with network analysis and planning tools to provide reliable power supply. The plan envisages an addition of over 4.5 GW generation capacity by 2022, including 1.5 GW from solar power, through a mix of private and public-sector investments.
The Jharkhand Distribution Company stated that more than 80 per cent of people in the state have access to electricity, and that it plans to increase this to all in the state.
The $310 million loan from the IBRD has a 5-year grace period, and a final maturity of 25 years.