The Andhra Pradesh Government is planning to start execution of works for the AP Rural High Voltage Distribution Project by March next year.
The project is expected to considerably reduce energy losses in the agriculture sector, besides improving the voltage profile to agri-pump sets. The Government has directed the DISCOMs to wrap up the tendering process and award the contracts by January 2012.
As part of a five year plan, the project will involve an investment of Rs 1,154 crore. Japan International Cooperation Agency has sanctioned loan assistant to an extent of 85 per cent of the project cost (Rs 988 crore) at a concessional rate of interest. The repayment period will be 40 years, including a grace period of 10 years.
“With the implementation of the project, energy losses are likely to come down from the estimated 25 per cent to 10 per cent in the agriculture sector,” an official release said.