ADB approves USD 148 mn loan to improve power supply in Sikkim

Asian Development Bank ADB has approved a USD 148.5 million loan to help modernise and enhance the reliability, quality and resilience of electricity supply in Sikkim.This project fully supports Sikkims Power for All initiative, ensuring round-the-clock uninterrupted access to quality electricity for households, industries, businesses, and the public, ADB said in a statement on Thursday.

Asian Development Bank (ADB) has approved a USD 148.5 million loan to help modernise and enhance the reliability, quality and resilience of electricity supply in Sikkim.

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, ADB said in a statement on Thursday. The project will modernise Sikkim's power distribution system by upgrading it with approximately 770 kilometres of climate-resilient medium-voltage underground and/or covered conductors, it added. Additionally, it will replace 580 kilometres of ageing and low-capacity bare conductors with new ones to increase distribution network capacity, the statement said. It will upgrade 26 existing power substations, including the installation of a supervisory control and data acquisition system, install 15,000 units of public street lighting in remote areas, and conduct electricity conservation and safety awareness programmes in 28 villages, it added.

The project will enhance the livelihoods of a minimum of 1,100 women, comprising self-help groups, producer groups and individual businesses through the installation of tailored renewable energy systems and improving their vocational skills, it said. Additionally, it will deploy solar energy systems and energy-efficient electrical equipment in 24 primary healthcare subcenters to enhance the capacity of rural healthcare facilities to offer in-patient treatments, especially during the winter months.