The World Bank has signed an agreement with the state government of Jharkhand and the central government to give a loan of Rs 21.7 billion for a 25 year period. The loan will be dispersed by International Bank for Reconstruction and Development and comes with a grace period of 5 years.
The loan will be provided under the Jharkhand Power System Improvement Project will be used to build new power transmission infrastructure as well as improving the technical efficiency and commercial performance of the state power utilities. According to the loan agreement, the funds will also be utilised for the automation of substations and to ensure reliable supply of power to the customers.
Moreover, to facilitate grid-integration, the funds will also be used to install over 3,50,000 smart meters in Ranchi. The improvement of the operational performance of transmission and discoms too comes under the scope of the program for which the funds have been mobilised.