In a significant development, the Government of India and the Asian Development Bank (ADB) have formalized a crucial agreement for a $200 million loan, aimed at enhancing the quality, efficiency, and reliability of power supply in the northern state of Uttarakhand.
The agreement, signed by Juhi Mukherjee, Joint Secretary of the Department of Economic Affairs in the Ministry of Finance, representing the Government of India, and Hoe Yun Jeong, Deputy Country Director and Officer-in-Charge of ADB’s India Resident Mission, marks a pivotal step in the Uttarakhand Climate Resilient Power System Development Project.
Mukherjee expressed confidence in the positive impact of ADB funding, stating, ‘The ADB funding for the project will strengthen power system infrastructure and help Uttarakhand in achieving its goal of providing 24×7 power to its residents.’
The project is designed to modernize the power network infrastructure in Dehradun city, introducing an advanced and climate-resilient underground cable system spanning 537 km, along with 354 ring main units and 99 compact substations. This initiative will not only enhance the power system’s capabilities but also facilitate the seamless integration and transmission of renewable energy to key load centers.
Jeong highlighted the project’s key components, stating, ‘The project will enhance the power system network’s capabilities, facilitating the seamless integration and transmission of renewable energy to load centers. Simultaneously, it involves upgrading the distribution system to minimize power outages and reduce technical losses.’
Moreover, the initiative extends beyond infrastructure development, aiming to empower women self-help groups in rural hilly districts. These groups will gain access to renewable energy sources and energy-efficient equipment to enhance their livelihoods. The Japan Fund for Prosperous and Resilient Asia and the Pacific, financed by the Government of Japan through ADB, will contribute a $2 million grant to support livelihood enhancement, training, and awareness-raising activities associated with the project.
The project will also involve non-governmental organizations in implementing and monitoring livelihood activities. ADB will play a pivotal role in supporting the capacity development of the Power Transmission Corporation of Uttarakhand Limited and the Uttarakhand Power Corporation Limited through leadership courses and project management programs, focusing on developing climate-resilient power sector projects.
In collaboration with the Energy Department, ADB will work on formulating an energy transition roadmap to support Uttarakhand’s low-carbon transition. This comprehensive approach aims to not only strengthen the state’s power infrastructure but also promote sustainable development and gender empowerment.
