ADB Sanctions Loan for West Bengal to Ensure Electricity Distribution

The Asian Development Bank (ADB) has approved a USD 241.3-million loan aimed at improving electricity distribution in West Bengal, enhancing the quality of life for residents by ensuring a reliable and sustainable power supply. This program aligns with the Indian government's Revamped Distribution Sector Scheme, which focuses on strengthening the operational efficiency of power distribution companies, as highlighted by ADB Principal Energy Specialist Roka Sanda.

Reliable electricity distribution is crucial for West Bengal's growth and development. The West Bengal Distribution System Strengthening Program will benefit 8.96 million consumers across seven districts in the state. Key initiatives include replacing low-tension overhead lines with aerial bundled cables, establishing separate electricity feeders for agricultural and non-agricultural users, and implementing an integrated information and operation management system to enhance power supply quality, performance monitoring, and corporate financial management.

The program aims to improve the operational efficiency of the West Bengal State Electricity Distribution Company Limited by building capacity in asset and financial management, promoting the adoption of renewable energy, rationalizing tariffs, and fostering gender equity and social inclusion. ADB's commitment to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific includes ongoing efforts to eradicate extreme poverty. Established in 1966, ADB is owned by 69 members, with 49 from the region.