The World Bank has agreed to extend a loan of Rs. 2,500 crore to the power utilities of the State.
The decision comes in the light of the project proposals prepared by the government seeking assistance from the World Bank for improving the transmission and distribution networks in the State. The project had been cleared by the Ministry of Power and has been sent for the consent of the Department of Economic Affairs of the Central government.
“The loan agreement will be signed once we receive the consent of the department of economic affairs,” Energy Secretary Ajay Jain said.
Speaking to The Hindu , Mr. Jain said the World Bank was impressed by the proactive measures launched by the State in energy conservation and energy efficiency measures. The funding from the bank would be utilised for establishing a smart grid, extending the high voltage distribution system and installation of solar pumpsets, among others. The proceeds of the loan would also be utilised to strengthen the existing network to provide better services to consumers.
The bank was impressed by the performance of the government as well as the past track record of the State which was the first in the country to usher in wide ranging reforms in the power sector. The power utilities were able to record one of the lowest aggregate technical and commercial losses following the slew of reforms.
The Energy Secretary, who recently participated in the world energy efficiency forum meeting held in Washington DC, also held discussions with a team of the World Bank. “They (the World Bank representatives) are impressed by the energy conservation and efficiency measures adopted in Andhra Pradesh. Once the proposed project for strengthening the network and controlling losses gets underway, the Bank wants to showcase the State as a role model in the third world countries so that they can replicate it,” he said.
