Power Infrastructure
State seeks $400 m from World Bank
Ruchika M. Khanna
Tribune News Service

Chandigarh, December 8
The power department of Haryana is eyeing an aid of about $400 million from the World Bank next year to strengthen the power situation of the state. An appraisal mission of the World Bank is likely to visit the state next month to finalise the modalities for granting the aid.

Officials said the state government had sent a loan request to the World Bank for $1.1 billion, which would be disbursed in phases. In the first phase, the state would get $400 million for upgrading the power transmission and distribution network.

Ashok Lavasa, financial commissioner and principal secretary, power, said a special team of six members of the World Bank recently visited the state on a pre-appraisal mission to review the loan proposal.

"The team met the heads of power utilities, transmission and distribution companies and the Haryana Electricity Regulatory Commission. We have requested that while $70 million each should be disbursed to the Uttar Haryana Bijli Vitran Nigam and Dakshin Haryana Bijli Vitran Nigam, $250 million would be required for upgrading transmission network and $10 million for capacity building,” he added.

“Once the state receives funds from the World Bank, it can ensure proper electricity supply to the consumers, better power transmission and minimal distribution losses”.

Lavasa further added that the UHBVN planned to use $70 million in implementing the Accelerated Power Development and Reforms Program-II (APDRP) of the central government to streamline the power distribution system and bring down the aggregated technical and commercial losses in the selected project areas to 15 per cent or below. The scheme would be implemented in Panipat and Yamuna Nagar towns in the first phase. KFW (Germany) had also promised to lend €70 million for the same purpose.

The DHBVN, on the other hand, would be using the loan amount for strengthening the distribution network of districts in southern Haryana by installing high-voltage distribution system, segregating rural agricultural and domestic load systems, installing new feeders as well as commissioning new substations.