GANGTOK,: The Asian Development Bank (ADB) has approved a $148.5 million (Rs.
1233.00 crore) loan for strengthening, modernization and climate-proof
distribution system to enhance reliability, quality and resilience of
electricity supply in Sikkim.
The total
value of the Sikkim Power Sector Development Project is $ 186 million (Rs.
1544.00 crore) which includes State counterpart funding of 20% of the total
project cost. Further, as Sikkim falls under the special category States, the
above approved loan is a grant for Sikkim, with only 10% of it being loan on a
long term repayment basis, informs State Power department on Monday.
It was
informed that the project consists of 13 packages out of which the global
tender formalities for the package 2: 11KV Distribution Network Development on
turnkey basis - 5 Lots of USD 50.81 million (Rs. 406.48 crore) has been already
completed. The global tender process for the package 1: 66/11KV substation renovation
and modernization on turnkey basis USD 8.71 million (Rs. 69.68 croe) and
package 3: LT Network Renovation & Augmentation on turnkey basis - 5 Lots
for USD 33.31 million (Rs. 266.48 crore) is ongoing.
This
exercise is mandatory to comply with the Ministry of DEA's project readiness
checklist of having tendered at least 40-50% of the project value before loan
negotiations which took place on 14th March 2024, said the Power department.
“This
project fully supports State government's vision for all initiative, ensuring
round-the-clock uninterrupted access to quality electricity for households,
industries, businesses, and the public. Additionally, it synergizes 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 Power
PCE-cum-secretary TT Lepcha.
“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,” said the Power
PCE-cum-secretary.
As per the
department, the project will upgrade and modernize Sikkim's power distribution
system by upgrading it with approximately 770 kilometres of climate-resilient
medium-voltage underground and/or covered conductors. Additionally, it will
replace 580 km of aging and low capacity bare conductors with new ones to
increase distribution network capacity. 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 programs in 28
villages.
As per
ADB's release from Manila, they will help develop a financial sustainability
strategy and a plan to establish Sikkim's Power department as an independent
entity, aimed at enhancing the financial sustainability of the electricity
sector.
Additionally,
it will assist Power department in formulating a power distribution master
plan, integrating geographic information systems and distribution system
modeling, establishing a real-time monitoring control center to enhance power
management, and devising a strategy for gender equality and social inclusion.
“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. Additionally, it will deploy solar energy systems and
energy-efficient electrical equipment in 24 primary health care sub-centres to
enhance the capacity of rural health care facilities to offer inpatient
treatments, especially during the winter months,” the Power department said.