AfDB loan of 730 crores to modernize Bengaluru power distribution system
As rising tariffs amid unreliable power supply annoys consumers, Asian Development Bank (AfDB) to grant $ 100 million (around ₹ 730 crore) loan to Bengaluru to fund retrofit and retrofit of the city’s electricity distribution system.
“The AfDB and the Indian government signed on December 31, 2020 a loan of 100 million dollars to modernize and modernize the electricity distribution system in order to improve the quality and reliability of the electricity supply in the city of Bengaluru in Karnataka, ”a statement from the Ministry of Finance said on Monday.
According to the press release, more than 2,800 km of fiber optic cables will be installed, in parallel with underground distribution cables, to strengthen the communication network. Pushing some 7,200 km of distribution lines underground should reduce technical and commercial losses by 30%.
The project would install 1,700 automated ring master units fitted with a Distribution Automation System (DAS) to monitor and control the distribution line switches from the control center. The fiber-optic cables are said to be used for smart metering systems, the distribution automation system in the distribution network and other communication networks, the statement said.
According to the ministry’s statement, the loan will strengthen Bescom’s capacity in the operation and maintenance of underground cabling, environmental and social protection, financial management and trade finance. “Improving financial management capacity will help Bescom access the domestic and international trade finance market,” he added.
In addition to a sovereign loan of $ 100 million, the AfDB would also offer another loan of $ 90 million without sovereign guarantee for the project at Bescom.