World Bank to provide USD 250 million loan to Rajasthan to improve power distribution

By: |
Published: August 28, 2018 8:36 PM

The World Bank will provide a USD 250 million loan facility to Rajasthan for improving the performance of its electricity distribution sector, the Union Finance Ministry said.

World Bank. (PTI)

The World Bank will provide a USD 250 million loan facility to Rajasthan for improving the performance of its electricity distribution sector, the Union Finance Ministry said today. An agreement was signed here among the Government of India, the Government of Rajasthan and the World Bank.

The Second Programmatic Electricity Distribution Reform Development Policy Loan for Rajasthan is the second in the series of two operations planned for a comprehensive turnaround of Rajasthan’s electricity distribution sector, the ministry said.

The first loan closed in March 2017. Electricity distribution utilities (DISCOMs) in Rajasthan provide electricity to about 9.5 million customers. The key areas that the programme will support include, strengthening governance in the distribution sector by establishing annual performance MoUs between the DISCOMs and the State Government.

“This operation will deepen the institutional and operational reforms that were launched in late 2015 centered around the Government of India’s (GoIs) Ujwal DISCOM Assurance Yojna (UDAY), which Rajasthan joined in 2016 and the Rajasthan State Electricity Distribution Management Responsibility (RSEDMR) Act…,” the ministry said in a statement.

To address the concerns of affordability and access to electricity for the poor, the program also supports the Government of India’s Domestic Efficient Lighting Program (DELP), under which more than 15 million LED lamps have been distributed in the state.

The loan from the International Bank for Reconstruction and Development (IBRD), has a 3-year grace period, and a maturity of 21 years.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Signs of revival: Deposits in Jan Dhan accounts exceed pre-Covid lockdown level
2RBI dividend a third of last year’s; to transfer surplus of Rs 57,128 crore to govt
3More central public sector enterprises told to reach 50% of annual capex target by Q2 end