Asian Development Bank approved $190mn loan to upgrade Bengaluru’s electrical infrastructure

by Dec 9, 2020

Asian development bank (ADB) has approved $100 mn of sovereign and $90 mn without sovereign guarantee loan for the electrical infrastructure upgradation work on Bengaluru city, capital of Karnataka state. The city’s aging electrical infrastructure which caused continuous electrical failure problems will be upgraded using the loan’s money. In a first step, the city’s  7,200 km of overhead distribution lines will be converted to underground cables with parallel installation of 2,800 km of fibre optic communication cables. By transferring the overhead lines to underground and by using fibre optics cables, electrical lines will be protected from natural hazards and interference which reduces technical and commercial losses by about 30 % while reducing the physical footprint of the substation. The fibre optic cables will also be used for smart metering systems, distribution automation system (DAS) in the distribution grid, and other communication networks. The project will install 1,700 automated ring main units adapted with a DAS to monitor and control the distribution line switchgears from the control centre.
This is the first time ADB has approved a mix of Sovereign and without sovereign guarantee loan for India, and it will supposedly help BESCOM (Bangalore Electricity Supply Company Ltd) to be able to raise the required capital expenditure using market-based approach.
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