ADB to lend $1 bn to PowerGrid for expansion

New Delhi, Dec 10 (IANS) The Asian Development Bank (ADB) on Thursday said it would lend $1 billion to state-run Power Grid Corporation for expanding its transmission capacity in the country.

“ADB is to provide a $500 million government-backed loan and a further $500 million in non-sovereign lending to India’s national transmission company, Power Grid Corporation of India Ltd,” ADB said in a statement here.

“The new transmission lines connecting renewable energy-rich areas to the national grid will enhance connectivity between the regions by bringing clean energy to more people, making the overall Indian power system more efficient, and improving India’s overall energy security,” Hun Kim, Director General of ADB’s South Asia Department, was quoted as saying.

The loans will fund building and upgrading high voltage transmission lines and substations in Rajasthan and Punjab, as part of government’s Green Energy Corridor initiative.

“To increase energy delivery from India’s west to southern region, the project will also include new high-voltage direct current terminals in Chhattisgarh, Tamil Nadu, and Kerala states, boosting interconnectivity between the regions,” the statement said.

The government has announced a national renewable energy target of 175 GW by 2022, while PowerGrid’s funding needs for the interstate Green Energy Corridor are estimated at $3.5 billion.

“The combination of ADB’s sovereign-backed and private sector loans is an innovative financing solution that provides PowerGrid with a large, competitive and efficient source of funding,” Todd Freeland, director general of ADB Private Sector Operations, was quoted as saying.

Leave a Reply

Please enter your comment!

The opinions, views, and thoughts expressed by the readers and those providing comments are theirs alone and do not reflect the opinions of www.mangalorean.com or any employee thereof. www.mangalorean.com is not responsible for the accuracy of any of the information supplied by the readers. Responsibility for the content of comments belongs to the commenter alone.  

We request the readers to refrain from posting defamatory, inflammatory comments and not indulge in personal attacks. However, it is obligatory on the part of www.mangalorean.com to provide the IP address and other details of senders of such comments to the concerned authorities upon their request.

Hence we request all our readers to help us to delete comments that do not follow these guidelines by informing us at  info@mangalorean.com. Lets work together to keep the comments clean and worthful, thereby make a difference in the community.

Please enter your name here