India, New Delhi: Yesterday, the Japan International Cooperation Agency (JICA) signed a loan agreement with the Government of India to provide JPY 26,800 million ($ 270,000) of Japanese Official Development Assistance for the Haryana distribution system upgrade project.
The agreement was signed in New Delhi by Shinya Ejima, Chief Representative of JICA in India and Rajesh Khullar from the Ministry of Finance, reports Business Standard. According to the agreement, the loan will be repaid in 20 years, with a grace period of six years.
The funds will be used for construction of new substations, augmentation of existing substations, purchase of power transformers, current and potential transformers, vacuum circuit breakers, introduction of Automated Meter Reading, etc.
The aim of the project is to upgrade distribution facilities due to increase in demand in Haryana, where industry and economy developed rapidly. It is scheduled for completion by June 2019.
Haryana Bijli Vitran Nigam Ltd. (UHBVN) will carry out the project in the northern part of the state and Dakshin Haryana Bijli Vitran Nigam Ltd. (DHBVN) in the southern part of the state.