For improving the performance of its electricity distribution sector in Rajasthan, the World Bank will provide a $250 million loan facility to the state. This is informed by the Union Finance Ministry. For this, Government of India, the Government of Rajasthan and the World Bank signed an agreement. Know more.
For improving the electricity distribution in Rajasthan, two operations for a comprehensive turnaround of Rajasthan’s electricity distribution sector were planned. Second Programmatic Electricity Distribution Reform Development Policy Loan for Rajasthan is the second in the series while the first loan closed in March 2017. Electricity distribution utilities (DISCOMs) in Rajasthan provide electricity to about 9.5 million customers.
Details of program
Under the second Program, the key areas are strengthening governance in the distribution sector by establishing annual performance MoUs between the DISCOMs and the State Government. In fact, this program will consider concerns of affordability and access to electricity for the poor. The Government of India’s Domestic Efficient Lighting Program (DELP) will also get support under this. Under DELP, over 15 million LED lamps have been distributed in the state.
The International Bank for Reconstruction and Development (IBRD) has sanctioned loan with a 3-year grace period and a maturity of 21 years.
