Rural Electrification Corporation Signs MoU Worth Rs.151.5 Billion (~$2.25 billion) in Jharkhand to Connect State to the Grid

February 21, 2017


The Rural Electrification Corporation (REC) has signed a memorandum of understanding (MoU) with the state government of Jharkhand worth Rs.151.5 billion (~$2.25 billion). An MoU was signed with Jharkhand Bijli Vitran Nigam Limited (JBVNL) for Rs.81.5 billion (~$1.212 billion) and another with Jharkhand Urja Sancharan Nigam Limited (JUSNL) for Rs.70 billion (~$1.041 billion) to develop transmission lines across the state and connect the entire state to the grid.

The MoUs were signed at the Momentum Jharkhand – Global Investors Summit 2017. The REC is a Non-Banking Financial Company (NBFC) that provides financial assistance to companies and other entities involved in the power sector.

The investment by REC will be utilized to develop the rural electricity distribution backbone and village electrification by JBVNL, stated a JBVNL official. It will also help in better implementation of the Deen Dayal Upadhayaya Gram Jyoti Yojana (DDUGJY) program, added the official.

In Jharkhand, the primary challenges to getting power are the topography (which is not uniform) and its majority tribal population living in remote areas. This investment will help JUSNL to rapidly lay transmission lines across the state and connect the entire state to the grid, stated an official at JUSNL. Projects like the 220 kV D/C Daltonganj–Garhwa transmission line, the 132 kV D/C Garhwa–Japla transmission line and the 132 kV D/C Hatia–Kanke transmission line will be completed soon, added the JUSNL official.

In Jharkhand, power purchase agreements (PPAs) for a total of 1.1 GW of solar projects are pending as the state tries to figure out its transmission issue among others.

Image Credit: Rural Electrification Corporation