The Asian Development Bank proposes to finance the BSES Rajdhani Power Limited (BRPL), Reliance Infrastructure's Delhi Distribution arm, the amount of USD 80,000 for the improvement of Delhi Electricity Distribution System.
According to ADB, the Project involves the improvement of the electricity distribution network in south and west Delhi including the rehabilitation of sub-stations, augmentation/replacement of transformers and other system efficiency improvement measures through the financing of BRPL's capital expenditure over the next two years.
Objectives and Scope
ADB assistance will:
- Allow BRPL to reduce aggregate technical and commercial losses in south and west Delhi by 3.5% over the next two years,
- Support the national and state governments in their efforts to reduce the technical and commercial losses of the Indian distribution network,
- Reduce the electricity demand-supply gap through an environmentally sustainable intervention without any new generation capacity addition,
- Catalyze private investment in Indian distribution sector.
Project Rationales as per the ADB
The Project is consistent with ADB's Strategy 2020.
Under Strategy 2020, ADB is committed to promote energy efficiency through supply-side measures. The Project is aligned with the India Country Partnership Strategy (CPS) 2013-2017. The CPS underlines the need for ADB to focus on expanding availability and access to energy by reducing losses and strengthening infrastructure and highlights that investments in the energy sector should target distribution networks at the state level. The Project is also in line with the Energy Sector Policy (2009) which highlights energy efficiency improvements in transmission and distribution systems. The policy proposes that ADB will continue to support installation of modern transmission systems to transmit electricity efficiently from generation facilities to consumers, including upgrading of existing systems to reduce technical losses. In addition, the Energy Policy 2009 encourages the facilitation of private sector investments to improve energy efficiency.
Description of Project Outputs
Improved electricity distribution network in South and West Delhi.
Summary of Environmental and Social Aspects
The Project is classified category B for environment, category B for involuntary resettlement, and category C for indigenous people. In accordance with ADB's Safeguard Policy Statement (2009), the potential environmental and social impacts and risks of the project have been identified. No land acquisition or resettlement is envisaged, land will be provided by government agencies. In addition, the environmental impacts of the project are expected to be limited and will be site-specific, reversible and mostly associated with temporary construction activities. The institutional capacity of BRPL to manage the project' social and environmental impacts will be strengthened. The company is committed to continue to build the capacity of its staff and contractors to effectively manage such possible impacts.
The complete Project Data Sheet of the proposed Project can be downloaded from here.
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