ADB grants $148.5m to enhance Sikkim's power infrastructure

It will replace 580 kilometres of old and low-capacity bare conductors.

The Asian Development Bank (ADB) has approved a $148.5m loan that will help in strengthening and modernising the power distribution sector in Sikkim India.

In a statement, ADB said the among will be used to upgrade around 770 kilometres of climate-resilient medium-voltage underground and/or covered conductions.

Sikkim will also replace 580 kilometres of ageing and low-capacity bare conductors to raise the distribution network capacity and upgrade the 26 power substation which will include the installation of a supervisory control and acquisition system.

“This project fully supports Sikkim’s Power for All initiative, ensuring round-the-clock uninterrupted access to quality electricity for households, industries, businesses, and the public. Additionally, it synergises with the Government of India’s Revamped Distribution Sector Scheme by enhancing the distribution network, thereby boosting operational efficiency and financial sustainability of the distribution business in the state,” said ADB Principal Energy Specialist Jaimes Kolantharaj.

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“The project will facilitate the efficient transfer and integration of renewable energy into the distribution system and provide improved access to electricity in rural areas and businesses, thereby increasing economic opportunities, ensuring productivity, and improving living conditions,” Kolantharaj added.

Aside from these, the project will also install 15,000 units of public street lights in remote areas, improve the livelihood of 1,100 women, and install solar energy systems and energy-efficient electrical equipment in 24 primary healthcare subcentres.