ADB, India sign $100 Mn loan to upgrade power distribution system in Bengaluru

The Asian Development Bank (ADB) and the Government of India on 31st December 2020 signed a $100 million loan to modernise and upgrade the power distribution system to enhance the quality and reliability of electricity supply in Bengaluru city.

Beside the $100 million sovereign loan, ADB will provide a $90 million without sovereign guarantee loan for the project to Bangalore Electricity Supply Company, one of five state-owned distribution utilities in Karnataka.

The conversion of overhead distribution lines into underground cables is expected to help build an energy-efficient distribution network, reduce technical and commercial losses and minimize electricity outage resulting from natural hazards such as cyclones and external disturbances to overhead lines.

Moving about 7,200 km of distribution lines underground will help reduce technical and commercial losses by about 30%. The fibre optical cables will be used for smart metering systems, distribution automation system in the distribution grid, and other communication networks. The project will install 1,700 automated ring main units adapted with a distribution automation system to monitor and control the distribution line switchgears from the control centre.