Sikkim Launches Power Sector Development Project for Sustainable Energy

GANGTOK: The State Power Department of Sikkim today organized the inaugural function of the Sikkim Power Sector Development Project at Samman Bhawan.

This project aims to enhance Sikkim's power infrastructure to cater to increasing electricity demands, raise the quality and reliability of the power supply, and ensure the optimal use of hydro and renewable energy resources available in the State.

Power Department Advisor and MLA Sanjeet Kharel, Asian Development Bank Energy Sector Director Sujata Gupta, and officials of the ADB, Power Department, and other related agencies were present during the program. During the ceremony, the Chief Minister welcomed ADB officials warmly and said they were thankful for their decision to approve the project.

In his speech, Chief Minister Golay spoke about the project's role in meeting the electricity needs of citizens, ensuring uninterrupted and high-quality power, and fostering sustainable economic growth. He also mentioned that it would reduce Aggregate Technical and Commercial (AT&C) losses below the national average and close the gap between Average Cost of Supply (ACS) and Average Revenue (ACR).

He again reinforced the State government's focus on infrastructure development as the cornerstone to progress under the "Bi-Pa-Sa" - electricity, water, and roads. He again reminded everyone of the State's intention to attain Net Zero and looked forward to greater cooperation with ADB.

The Chief Minister formally inaugurated the project brochure at the event. MLA Sanjeet Kharel appreciated the Chief Minister's leadership and underscored the fact that the project would augment power distribution strength, describing it as the very backbone for development in the State.

 ADB Project Director Jigmey Namgyal detailed the overview of the project.

The total cost is estimated at $186 million (Rs 1,540 crores), which will be funded through an ADB loan of Rs 1,229 crores and State government financing of Rs 311 crores. This project includes the modernization of the State's electricity distribution system, renewable energy integration, and climate-proofing of infrastructure. It is also in line with the Government of India's RDSS to enhance operational efficiency and financial stability in power distribution.

This project marks a big milestone for Sikkim, making a step forward toward building a sustainable and reliable energy infrastructure for promoting the State's long-term development goals.

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