New Delhi, Dec 2: The Indian Government has recently signed 133 million USD loan agreement with the Asian Development Bank. The Agreement was signed to strengthen the power distribution sector in the state of Meghalaya.

 

The loan is to be supplemented with a 2 million USD grant from the Asian Development Bank Japan fund for poverty reduction. This fund was basically allocated to finance renewable energy projects and support income generation activities for disadvantaged groups and women. It is to be used to finance renewable energy mini-grids to improve power quality.

 

The loan is to be used for the modernization of the power distribution network in Meghalaya and improve the quality of power used in industries, households and businesses. Though, the state of Meghalaya has achieved 100% electrification, yet the remote villages have to suffer from frequent power cuts. This issue is mainly caused due to outdated technology used in substations and overloaded distribution network that result in high power losses.

 

The funds will be used to construct 23 substations, modernize 45 substations and upgrade 2,214 kilometres of distribution lines. Apart from these, smart meters are to be installed in 1,80,000 households. The funds allocated will help the state to implement its '24/7 Power for all' initiative.

 

The '24/7 Power for all initiative' is a joint initiative of GOI and the Meghalaya state government. It aims to provide continuous power supply to all households, commercial businesses, industry and other public needs.