India on Tuesday signed a $250 million Development Policy Loan (DPL) to improve the performance of Rajasthan's electricity distribution sector under the states "24x7 Power for All" programme.
The agreement signed between the Central government, Rajasthan's state government and the World Bank is the second in the series of two operations planned for a comprehensive turnaround of Rajasthan's electricity distribution sector, an official statement said. The first loan closed in March last year.
The electricity distribution utilities (DISCOMs) in Rajasthan provide electricity to about 9.5 million customers. The key areas under the programme include strengthening governance in the distribution sector in the state, reducing energy procurement costs and improving the operational performance.
It will also involve financial restructuring and recovery in the sector by transferring considerable amounts of the DISCOMs debt to the state.
Economic Affairs Joint Secretary Sameer Kumar Khare said the programme will contribute to the state's fiscal sustainability.
The loan has a three-year grace period and a maturity of 21 years.
--IANS
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