ADB approves $132.0 million loan to Meghalaya to revamp power supply network

The Asian Development Bank (ADB) has approved a $132.8 million loan to improve power quality and upgrade the power distribution network in Meghalaya, a state with 100% electrification.

This project fully supports Meghalaya’s Power for All initiative in providing quality electricity 24 hours to all houses, industries, businesses, and the public. By modernizing and improving the distribution network, the project will improve the operational efficiency of the distribution system and the financial sustainability of distribution business in the state,” ADB's Senior Energy Specialist for South Asia Jaimes Kolantharaj said in a statement.

It said although Meghalaya has achieved 100% electrification, the state’s per capita electricity consumption of 832 kilowatt-hours (kWh) is low compared to the national average of 1,122 kWh in 2017, and remote rural areas in the state suffer from frequent power interruptions.

Distribution networks are overloaded and substations in rural areas use outdated technology, resulting in high aggregate technical and commercial (AT&C) losses.

The project will construct 23 substations; renovate and modernize 45 substations, including the provision of control room equipment and protection systems; install and upgrade 2,214 kilometers of distribution lines and associated facilities covering three out of the six circles in the state. It will replace antiquated electromechanical meters with smart meters, which will benefit about 180,000 households.

The Government of India and the state government embarked on a joint initiative in 2015 called 24X7 Power for All Meghalaya to provide uninterrupted, quality, reliable, and affordable power supply to all electricity consumers.

The loan will be supplemented by a $2 million grant from ADB’s Japan Fund for Poverty Reduction that will finance mini-grids that will improve power quality and support income generation, especially for women and other socially disadvantaged groups, using renewable energy sources in three villages and three schools, it said.

The project will help develop a distribution sector road map and a financial road map for the Meghalaya Power Distribution Corporation Limited (MePDCL). These road maps will strengthen the capacity of MePDCL to operate and manage the distribution networks.