The project is fundamentally aimed at improving the overall reliability of the power distribution system, besides making the network resilient to climate disasters, and improving the institutional capacity of WBSEDCL.
December 9, 2021
The International Bank for Reconstruction and Development (IBRD) and its concessional lending arm, the International Development Association (IDA) – also collectively known as the World Bank, has approved a loan of USD 135 million for West Bengal to improve operational efficiency and reliability of electricity supply in a few rural areas in the state.
The variable spread loan or floating interest loan by IBRD will have a maturity period of 17 years, which includes a grace period of seven years. The aim of the capital is to strengthen power distribution networks in addition to investing in smart-grid technologies and ensuring the financial sustainability of the state discom.
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Further, the West Bengal Electricity Distribution and Grid Modernisation Project is making efforts to reduce distribution system losses, scale up the capacity of the distribution network to meet the growing load demand. The objective of the project is also to improve the overall reliability of the system, make the network resilient to climate disasters, and improve the institutional capacity of the West Bengal State Electricity Distribution Company.
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In the past five years, owing to a number of factors like the rising economic growth of West Bengal, there has been a subsequent growing electricity demand at a rate of 4.5 percent.
As the number of consumers has reached almost 20 million under the state distribution company, the project will support the implementation of the Government of India’s initiative 24×7 Power for All Programme and support WBSEDCL in transitioning toward a leading public sector utility in India.
