Asian Development Bank approved a loan of $200 million to strengthen the state's electricity system & power transmission network | 16 Dec 2023

Why in News?

On December 14, 2023, the Asian Development Bank in New Delhi signed a loan agreement with the government approving a loan of $ 200 million (about Rs 1660 crore) for strengthening the electricity system and power transmission network in Uttarakhand.

Key Points:

• The loan MoU was signed by Juhi Mukherjee, Joint Secretary, Department of Economics, Ministry of Finance and Hoyun Jeong, Deputy Resident Mission Director of ADB in India, in New Delhi.
• Juhi Mukherjee, Joint Secretary of Economic Department, said that this will facilitate in strengthening the infrastructure of the power system of Uttarakhand, development of network capabilities of the power system, renovation of load centres and seamless integration of energy. Electricity will be available 24 hours to the residents of the state.
• ADB Deputy Resident Director Hoyun Jeong said that under this plan, 537 km underground cable system, modernization of power network, capacity development of substations and power distribution process will also be made more effective.
• Under the MoU, Power Transmission Corporation of Uttarakhand Limited (Pitkul) will strengthen the power transmission network with an investment of about Rs 850 crore. At the same time, Uttarakhand Power Corporation Limited (UPCL) will underground the power line of Dehradun city for about Rs 750 crore.
• Apart from 11 KV, UPCL will also underground 33 KV power lines at some places and 537 km of main roads and associated supporting roads. At the same time, along with building new sub-stations, Pitkul will also build power lines.