A&N Islands Sign Two Agreements and One MoU Worth Rs. 500 Crore for Power Sector Modernisation

Tarun Karthick

Sri Vijaya Puram, 18 March 2025

In a major step toward modernising the power distribution network in the Andaman and Nicobar Islands, two agreements and one Memorandum of Understanding (MoU) worth over Rs. 500 crore were signed on March 17, 2025, at Sri Vijaya Puram. The signing took place in the presence of the Chief Secretary of A&N Administration, Dr. Chandra Bhushan Kumar, IAS.

The agreements include a Smart Metering project valued at Rs. 53.26 crore, a Loss Reduction initiative costing Rs. 247.12 crore, and an Interconnection of Islands project worth Rs. 208.04 crore. These were signed by the Secretary (Power) on behalf of the A&N Administration and senior officials from Power Grid, which has been designated by the Ministry of Power as the Project Implementing Agency (PIA) for these initiatives under the Revamped Distribution Sector Scheme (RDSS).

The RDSS is a central government initiative aimed at strengthening and modernizing India’s power distribution sector. The newly signed agreements and MoU are expected to enhance power quality and reliability while ensuring a more sustainable electricity distribution system across the A&N Islands. The scheme focuses on three critical areas: Loss Reduction, Smart Metering, and the Interconnection of Islands.

Loss Reduction: This component aims to upgrade the outdated electricity distribution infrastructure to minimize losses and enhance efficiency. Key measures include replacing old transformers, constructing new substations, augmenting existing ones, replacing old or frayed conductors with covered conductors, feeder segregation, building additional high-tension (HT) lines, and strengthening transmission lines. These upgrades will help minimize power outages and voltage fluctuations.

Smart Metering: The implementation of prepaid smart meters for consumers, along with system metering at the feeder and distribution transformer levels, will revolutionize power consumption monitoring. The integration of Advanced Metering Infrastructure (AMI) will provide consumers with accurate billing, real-time energy usage tracking, and increased transparency in electricity consumption. Additionally, the Power Department will be able to detect power theft, reduce losses, and improve revenue collection, ensuring better service delivery.

Interconnection of Islands: This initiative is a preparatory step for the future High Voltage Direct Current (HVDC) link with the mainland. The interconnection will be established at a 66 KV voltage level and will help create a unified grid covering 86% of the total consumer base. This upgraded 66 KV grid will enhance power resource utilization, reduce outages, and improve system efficiency by minimizing transmission losses. The project will include five major substations located in Bambooflat, Bakultala, Rangat, Mayabunder, and Diglipur.

The signing of these agreements marks a crucial milestone in the implementation of the RDSS in the A&N Islands. The UT Administration remains committed to providing a reliable and sustainable power infrastructure to meet the growing needs of consumers across the islands. These initiatives are expected to bring long-term benefits by enhancing energy efficiency, reducing losses, and ensuring a stable power supply for residents and businesses alike. (Story Based on PR)

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