The Rural Electrification Corporation (REC) has signed a memorandum
of understanding (MoU) with the state government of Jharkhand worth Rs.151.5 billion (~$2.25 billion). An MoU was signed with Jharkhand Bijli Vitran Nigam
Limited (JBVNL) for Rs.81.5 billion (~$1.212 billion) and another with Jharkhand
Urja Sancharan Nigam Limited (JUSNL) for Rs.70 billion (~$1.041 billion) to
develop transmission lines across the state and connect the entire state to the
The MoUs were signed at the Momentum Jharkhand – Global Investors Summit 2017. The REC
is a Non-Banking Financial Company (NBFC) that provides financial assistance to
companies and other entities involved in the power sector.
The investment by REC will be utilized to develop the rural
electricity distribution backbone and village electrification by JBVNL, stated
a JBVNL official. It will also help in better implementation of the Deen Dayal
Upadhayaya Gram Jyoti Yojana (DDUGJY) program, added the official.
In Jharkhand, the primary challenges to getting power are the
topography (which is not uniform) and its majority tribal population living in
remote areas. This investment will help JUSNL to rapidly lay transmission lines
across the state and connect the entire state to the grid, stated an official
at JUSNL. Projects like the 220 kV D/C Daltonganj–Garhwa
transmission line, the 132 kV D/C Garhwa–Japla
transmission line and the 132 kV D/C Hatia–Kanke
transmission line will be completed soon, added the JUSNL official.
Jharkhand, power purchase agreements (PPAs) for a total of 1.1 GW of solar
projects are pending as the state tries to figure out its transmission issue