ADB Approves $148 Million for Modernizing Sikkim’s Power Distribution


In order to strengthen Sikkim’s energy distribution infrastructure and make it more resilient to climate change, the Asian Development Bank (ADB) has authorised a $148.5 million loan. This will additionally improve the system’s quality, resilience, and reliability. It will enhance the ability of rural healthcare facilities to offer inpatient treatments, particularly during the winter, by installing solar energy systems and energy-efficient equipment in 24 primary healthcare sub-centers.

This project guarantees round-the-clock, high-quality energy access for homes, businesses, industries, and the general public, fully aligning with Sikkim’s Power for All strategy. Additionally, by strengthening the distribution network, it enhances the operational effectiveness and financial sustainability of the state’s distribution sector, which in turn supports the Government of India’s Revamped Distribution Sector Scheme. It is anticipated that the programme will build about 770 kilometers (kms) of medium-voltage underground and/or covered conductors that are climate-resilient, modernising Sikkim’s power distribution system. The network capacity will also be increased by replacing 580 kms of antiquated, low-capacity bare conductors.

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