ADB’s Loan to Upgrade Power Distribution in Bengaluru
Asian Development Bank (ADB) will be providing a $100 million (about Rs 730 crore) loan for upgrading and modernizing the power distribution system in Bengaluru. ADB and the Government of India have signed a loan agreement regarding this.
- This agreement will help in enhancing the reliability and quality of power supply in Bengaluru, Karnataka.
- Under this project for upgrading the power distribution system in the city, more than 2,800 km of fibre optical cables will be installed in parallel to underground distribution cables for strengthening the communication network.
- The fibre optical cables will be used for the distribution automation system (DAS) in the distribution grid, smart metering systems, and other communication networks.
- 1,700 automated ring main units adapted with a DAS will be installed under the project for controlling and monitoring the distribution line switch gears from the control centre.
- In addition to the $100 million loan, ADB will also offer a $90 million loan without a sovereign guarantee to Bangalore Electricity Supply Company Ltd (BESCOM) for the project.
- The project will help in strengthening the capacity of BESCOM in the maintenance and operation of environment and social safeguards, underground cabling, financial management, and commercial financing.
Asian Development Bank (ADB)
ADB is a regional development bank established in the year 1966 and is headquartered in Metro Manila, Philippines. It has 68 nations as members at present. ADB is also the Observer at the United Nations.