India Press Releases - 2004

14 October 2004

U.S., India Launch $ 30 Million Power Reforms Program

NEW DELHI - The United States and India today launched a $30-million, five-year initiative to expand bilateral cooperation on electric power distribution reform in India. Representatives of the Government of India and the U.S. Agency for International Development (USAID) will cooperate to bring light and opportunity to millions of people across India through the Distribution Reform, Upgrades and Management (DRUM) project.

In his keynote address at the launch ceremony here today, U.S. Ambassador David C. Mulford said: "We are partnering with the Government of India to demonstrate that commercially viable power utilities are key to meeting consumer needs and expanding supply." This project furthers the cooperative relationship that continues to evolve between the two democracies, he added.

Ministry of Power Secretary R.V. Shahi inaugurated the event, which included a signing ceremony between the U.S. Department of Agriculture's Rural Utilities Service (RUS) and the Indian Rural Electrification Corporation (REC). As one element of the DRUM "beat," these American and Indian counterparts will examine the U.S. experience in rural electrification and then tailor it to India's context. Demonstrating commercially viable and accountable distribution utilities is the focus of the work.

India is working to address the issues of power and water shortages, and the U.S. welcomes the opportunity to collaborate on ways to expand access to electricity in cities and villages. USAID and its partners will improve power grid infrastructure, increase use of clean technologies, and support training for 25,000 utility personnel - from linemen to senior managers - on commercial, technical, safety and management aspects of electricity distribution.

RUS was created in 1936 by American President Franklin D. Roosevelt to achieve "last mile" electrical connections across rural America. The new government-to-government partnership between RUS and India's REC will glean approaches from that U.S. success story to light the way for millions of Indians.

DRUM will establish pilot electricity distribution projects in selected areas to test out approaches; design alternative financing schemes to fund upgrades and expansion; train utility staff at all levels in engineering techniques and customer service to cut current losses in the system; and link water conservation with higher quality power services for agricultural and residential customers. In addition to the U.S. Rural Utilities Service, American partners implementing the project include PA Consulting Group and CORE International, Inc.