In a significant development, the Asian Development Bank (ADB) on Wednesday sanctioned a $200 million loan to the Government of India to improve the quality, efficiency, and reliability of power supply in the state of Uttarakhand.

The project will modernise Dehradun city’s power network infrastructure by introducing an advanced and climate-resilient underground cable system comprising 537 km subterranean cables, 354 ring main units, and 99 compact substations, Ministry of Finance said in a statement.

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Additionally, it will enhance the current power system by installing upstream substations and their associated power lines that will help meet increasing electricity demand, reduce network congestion, and improve power distribution reliability in urban and suburban areas.

Also, the Japan Fund for Prosperous and Resilient Asia and the Pacific, financed by the Government of Japan through ADB, will provide a $2 million grant to support livelihood enhancement, training, and awareness-raising activities of the project.

The signatories to the loan agreement for the Uttarakhand Climate Resilient Power System Development Project were Joint Secretary, Department of Economic Affairs in the Ministry of Finance, Juhi Mukherjee, for the Government of India, and Hoe Yun Jeong, Deputy Country Director and Officer-in-Charge of ADB’s India Resident Mission, for ADB.

“The ADB funding for the project will strengthen power system infrastructure and help Uttarakhand in achieving its goal of providing 24×7 power to its residents,” Mukherjee said.

Hoe Yun Jeong said: “The project will enhance the power system network’s capabilities, facilitating the seamless integration and transmission of renewable energy to load centers. Simultaneously, it involves upgrading the distribution system to minimize power outages and reduce technical losses.”

The ministry also highlighted that the project will empower women self-help groups in rural hilly districts, providing them with access to renewable energy sources and energy-efficient equipment to enhance their livelihoods.

The ADB will facilitate training programs for communities, focusing on energy conservation and business management skills, while also conducting awareness and educational activities in schools to promote opportunities for employment in the energy sector. The project will involve non-governmental organizations in implementing and monitoring the livelihood activities.