ADB signs 100 million USD loan to boost power supply in Bengaluru

The Asian Development Bank recently signed an agreement of 100 million USD modernize and upgrade the power distribution in Bengaluru city.

Key Highlights

The 100 million USD loan is to be used to enhance the quality and reliability of electricity supply in Bengaluru city under the Bengaluru Smart Energy Efficient Power Distribution Project. Also, the loan will be used to install 2,800 km of fiber optical cables. These fiber optical cables are to be laid in parallel to the underground distribution cables. This parallel laying of the electrical and communication lines will help to reduce technical and commercial losses by 30%.

The fiber optical cables are to be used for smart metering systems and distribution automation system in the distribution grid. Also, the project will install 1,700 automated ring main units to control the distribution line switch gears.

Bengaluru Smart Energy Efficient Power Distribution Project

• The Project aims to convert the overhead distribution lines into underground cables.
• It will also install optical fiber cables in parallel to the underground cables.
• Install automated ring units in six divisions of Bengaluru city
• Increase the institutional operational capacity of BESCOM (Bangalore electricity Supply Company)

ADB Loan Approvals

• On December 1, 2020, the ADB signed 132.8 million USD loan to strengthen Meghalaya Power Distribution sector.
• On December 8, 2020, the Asian Development Bank approved two loans. A 500 million USD loan to construct new metro lines in Bengaluru and 300 million USD to strengthen primary health care in urban areas.
• On December 18, 2020, the Asian Development Bank signed 300 million USD loan to upgrade rural power distribution to provide reliable electricity supply to the rural areas of Uttar Pradesh.
• In January 2021, India and ADB signed 231 million USD of loan to increase power generation in Assam.

The Asian Development Bank is mainly assisting India in transport and power projects of India helping towards modernization of the country.

Month: Current Affairs - January, 2021