The Asian Development Bank (ADB) and the Government of India signed a $220 million loan to improve energy security, quality of supply, efficiency, and resilience of power sector in Tripura.

The signatories to the Tripura Power Distribution Strengthening and Generation Efficiency Improvement Project were Shri Rajat Kumar Mishra, Additional Secretary, Department of Economic Affairs in the Ministry of Finance who signed for the Government of India, and Mr Hoe Yun Jeong, Officer-in-Charge of ADB’s India Resident Mission, who signed for ADB.

After signing the loan agreement Shri Mishra stated that the project will support the Government of Tripura’s efforts to strengthen its power sector through replacement of inefficient power plants, strengthen the distribution network and installation of smart meters that will help increase generation capacity, reduce distribution losses and to meet the increasing electricity demand to boost the state economy.

“The Project will fund the replacement of Rokhia power plant with a highly efficient combined cycle gas turbine that will reduce greenhouse gas emissions through fuel saving, modernize the state’s power distribution network and build institutional capacity and overall business process of the project executing agencies,” said Mr. Jeong.

It will also promote gender equality through pilot testing of gender and socially inclusive workplace practices. The project will support at least 15 selected women self-help groups (SHGs) under Tripura rural livelihood mission targeting socio-economic empowerment of the rural poor and women of the state that will include farming and non-farming sector.

A reliable electricity supply will lead to social and economic benefits and improved conditions for schools, hospitals, and other social services.

The project components will be designed to withstand heavy rainfall, lightning, and storms with high wind speeds to help the region remain resilient to potential climate change risks. Distribution underground cabling will be installed by the horizontal directional drilling method or tunneling method to minimize road openings and reduce socio-environmental impacts during project implementation.

Power sector financing boosts grid efficiency and resilience through plant upgrades, distribution modernization, and social inclusion measures. ADB and the Government of India financed a project to strengthen Tripura's power sector by replacing an inefficient plant with a combined cycle gas turbine to improve generation efficiency and reduce emissions, modernizing the distribution network and installing smart meters to cut losses and boost reliability, incorporating climate-resilient design for distribution assets, using trenchless methods for underground cabling to minimize socio-environmental impacts, and supporting institutional capacity building plus pilot gender-inclusive and women self-help group empowerment measures.