New Delhi: The Asian Development Bank will loan $600 million to the state-run Power Grid Corp of India to part-finance the expansion of a power transmission project, the bank said on Tuesday.
“In addition to this $600 million loan, a potential second ADB loan of $400 million is expected to be reviewed for approval later this year,” the Manila-based bank said in a statement.
Power Grid is constructing a high-voltage power transmission system to transmit clean and abundant hydro-power generated in the northern and the north-eastern parts of India to demand centres in the west and within the northern areas, it said.
The total cost of the project is estimated at $2.54 billion. Apart from the ADB loan, Power Grid will invest $762 million and raise the balance funding from other financial institutions.
Last month, the World Bank pledged a $600 million loan to Power Grid. India aims to increase power generation capacity by 78,600 megawatts by 2012, as part of its drive to scale up infrastructure to sustain a high economic growth.