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REC inks Rs 410 cr MoU with KfW for conversion to HVDS

Written by: Staff

New Delhi, Aug 8 (UNI) Rural Electrification Corporation (REC) has signed an MoU with German donor agency KfW under which the German bank will provide assistance of 70 million Euro (Rs 410 crore) for conversion of Low Voltage Distribution System to High Voltage Distribution System (HVDS).

REC Chairman-cum-MD Anil Kumar Lakhina and KfW Director Christian Haas here signed the agreement -- which is expected to boost the country's energy efficiency programme -- under the Indo-German Bilateral Development Corporation. Union Power Minister Sushil Kumar Shinde and German Ambassador to India Bernd Mutzelburg were present on the occasion.

Initially, assistance will be provided to Kadappa and Chittoor districts of Andhra Pradesh which will be expanded to cover HVDS programme in other states also. The programme aims at reduction in Transmission and Distribution (T&D) losses and providing reliable and quality power supply to agricultural consumers, an official release here today said.

On implementation, the project shall also help in arresting theft of energy, minimising failure of distribution transformers, energy conservation due to high-end use efficiency and improved voltage profile for the consumers.

The estimated saving in losses will be about 80 MU with an overall annual financial benefit of Rs 115 crore on investment of Rs 410 crore.

The HVDS project can help in reduction in greenhouse gas emissions providing an opportunity to the project promoters the benefit of additional revenues through sale of Carbon Emission Reductions (CERs) under the Clean Development Mechanism (CDM).

The German donor agency has also agreed to provide assistance for various capacity building measures including CDM.

In view of the large tangible and intangible benefits of the HVDS programme, states like Punjab, Maharashtra and Rajasthan have undertaken ambitious schemes for such conversions.


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