US Government & General Electric Join Hands to Boost Rural Electrification in India

NEW DELHI | January 27, 2006

In a significant initiative that will bring electricity to thousands in India, the U.S. Agency for International Development (USAID) and General Electric (GE) on January 26 launched a partnership to increase access to clean and affordable energy services in rural India.

USAID Deputy Assistant Administrator for the Bureau of Economic Growth, Agriculture and Trade (EGAT), James T. Smith, and GE’s Senior Manager for International Trade and Investment, Tim Richards, announced the India Rural Electrification Program at USAID’s office in Washington on Thursday, January 26, 2006.

Commenting on this new initiative, USAID India’s Mission Director George Deikun said in New Delhi on Thursday: “This partnership is a milestone in India’s march towards universal electrification. The partnership will help to bring electricity to thousands of people in India. USAID is proud to be associated with this project. Access to clean energy helps rural communities create new opportunities for income generation and improve health care services, enhance agricultural productivity and increase access to clean water.”

The partnership, under USAID’s Global Development Alliance initiative, will span a two-year period and provide up to four village clusters in India with access to clean energy through GE power generation technologies, which utilize biomass, wind and solar resources.

USAID plans to contribute $600,000 to this program. GE will provide up to $2.7 million in direct and indirect funding through its worldwide network of experts and other partners. Winrock International India will also contribute by helping to mobilize local Indian communities where the electrification systems will be located.

Currently 56 percent of India’s 700 million rural residents lack adequate and/or reliable power supplies. Experience from implementation of these pilot projects will help identify successful rural electrification models that can support the Government of India’s promise of “power for all by 2009” and the 2003 Rural Electrification Act.

The Global Development Alliance works to develop partnerships with private partners such as General Electric to bring additional resources, intellectual capital, new technologies and technical and managerial expertise to address development challenges.

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