Shillong, Dec 1: The Asian Development Bank (ADB) has signed a USD 132.8 million loan to strengthen and modernise the distribution network and improve the quality of power supplied to households, industries, and businesses in Meghalaya.

The loan will be supplemented by a USD 2 million grant from ADB Japan Fund for Poverty Reduction. The project will help develop a distribution sector road map and a financial road map for the Meghalaya Power Distribution Corporation Limited (MePDCL).

These road maps will strengthen the capacity of MePDCL to operate and manage the distribution networks, said the Manila-headquartered global funding body.

An official of ADB said that the project supports the state government’s initiative and will help the state reduce its high technical and commercial losses through network strengthening, metering, and billing efficiency improvements.

Meghalaya is all set to achieve 100 percent electrification, however, the remote rural areas in the state suffer from frequent power interruptions due to overloaded distribution networks.

An official of the State Power department told Hub News that with the ADB loan the government will work to provide uninterrupted, quality, reliable, and affordable power supply to all electricity consumers.

The new project will include the construction of 23 sub-stations; renovation and modernization of 45 sub-stations, including the provision of control room equipment and protection systems. It will also install and upgrade 2,214 km of distribution lines and associated facilities covering three out of the six circles in the state.