ADB Approves $200 Million Loan to Enhance Power System Efficiency in Uttarakhand

The loan will help Dehradun upgrade its power network infrastructure

December 5, 2023


The Asian Development Bank (ADB) has granted a $200 million loan to enhance the quality, efficiency, and dependability of Uttarakhand’s electricity supply and help the state’s residents transition to the use of clean energy sources.

With the introduction of an innovative and climate-resilient underground cable system that consists of 354 ring main units, 99 compact substations, and 537 kilometers of underground cables, the project will update the power network infrastructure of Dehradun, the capital city of Uttarakhand.

Constructing upstream substations and the powerlines that connect them will also improve the current power system by helping to meet the growing electricity demand, minimize network congestion, and increase the dependability of power in urban and suburban areas.

“This project will help Uttarakhand in achieving its goal of providing 24×7 power to its residents and transitioning to the use of clean energy, rehabilitating, upgrading, and modernizing power facilities will contribute to improving lives and sustaining economic growth in the state,” said ADB Senior Energy Specialist Jaimes Kolantharaj.

The project will receive a $2 million grant from the Japan Fund for Prosperous and Resilient Asia and the Pacific, which the Japanese government funds through ADB to support the project’s livelihood enhancement, training, and awareness-raising activities.

By offering project management courses and leadership training, ADB will assist in the capacity building of the Uttarakhand Power Corporation and the Power Transmission Corporation of Uttarakhand, enabling them to develop climate-resilient power sector projects.

It will also work with the state’s Energy Department to create a roadmap for the energy transition to promote Uttarakhand’s low-carbon transition.

By giving them access to energy-efficient equipment and renewable energy sources, the project will enable women’s self-help groups in rural, hilly districts to improve their standard of living.

This month, the ADB also approved a $250 million policy-based loan to strengthen India’s power sector and support a speedy transition to renewable energy.

In January, the Uttarakhand government released a draft solar policy, aiming to achieve 2,000 MW of installed solar capacity and increase the share of solar power in power distribution companies’ energy purchases to 18% by 2028.