"The demand-driven program supports capacity building and awareness raising on HVDS and will also establish a complaint redressal mechanism for rural consumers," he added.
The program will be implemented until March 2022, by which time about 1.50,000 metered HVDS connections are expected, the ADB said in a release.
"Effective metering, billing and usage-based tariffs for customers served by HVDS network will set the stage for investments in energy efficient pumps, drip irrigation and could support improvements in subsidy management," said Konishi.
ADB will support awareness raising efforts on the benefits of HVDS compared to the traditional electricity distribution network as well as efficient use of electricity and water.
Improved awareness will help expand the HVDS network to cover agricultural customers beyond 2022 and mobilise commercial financing.
The loan will be under ADB's results-based lending (RBL) modality, where fund disbursements are linked to the achievement of agreed program results rather than to upfront expenditures, as is the case with traditional investment lending.
"This first ADB-financed RBL program in South Asia's energy sector will help in the early construction and installation of metered HVDS through the installation of about 46,800 kilometers of grid extension lines, construction and upgrading of distribution substations," the release said.
The program will also build institutional capacity of the Maharashtra State Electricity Distribution Company Limited (MSEDCL) on HVDS.
The loan will be accompanied by a USD 1 million technical assistance from ADB to demonstrate energy and water conservation efforts.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.