Haryana seeks interest-free power loan from WB

By roping in big players like Reliance Energy, Haryana has signalled it wants not only to augment power generation but also strengthen the transmission and distribution system.

The state needs about Rs 4,000 crore to upgrade its transmission system and Rs 3,000 crore for modernising its distribution system. The upgrade of the existing system is expected to save transmission and distribution losses substantially.

Talking to Business Standard, Haryana Finance Minister Birender Singh said the state was contemplating borrowing from the World Bank an interest-free loan for irrigation and power projects.

"We are considering building dams on water reservoirs like the Renuka, Lakhwara and Kisau to create scope for hydro power generation and irrigation round the year," he said, helping Haryana, Uttaranchal, Himachal Pradesh, Delhi, Rajasthan, and Uttar Pradesh.

If the proposals materialise, 15,000 cubic feet of water will be available to the above-mention states, helping Haryana to generate power.

Power consumption in Haryana is about 4,200 Mw in the peak season and generation is about 4,000 Mw now.

The state is upbeat on private participation in power generation because there is a proposal to have additional capacities of 5,000 Mw in four years. But there is less likelihood of private participation in overhauling the existing infrastructure.