New Delhi: Asian Development Bank (ADB) will provide two loans worth $251.55 million, including the grant for improving rural power supply in Madhya Pradesh.
The ADB and the central government signed an agreement here under which the Manila-based lender will provide $200 million loan for power distribution in rural Madhya Pradesh.
“(it will) also help in providing reliable 24-hour electricity to rural households that will stimulate business, employment and education,” a finance ministry statement said.
The investment programme is aimed at benefitting over 2.6 million households and would provide new power connections to 1.3 million homes, it said.
The $200 million is part of the first installment of $400 million assistance from the ADB under Madhya Pradesh Energy Efficiency Improvement Investment Programme.
Madhya Pradesh’s demand for power has been rapidly rising in tandem with increasing economic growth. India and ADB have been working closely with the authorities to support electricity sector reforms.
The ADB also entered into an agreement with India to extend a loan of $51.55 million to tackle coastal erosion in Karnataka and Maharashtra. This, too, is the first tranche under the Sustainable Coastal Protection and Management Investment Programme for the two states.
“The first tranche loan will focus on heavily eroded coast in Karnataka (Ullal) and Maharashtra (Mirya Bay),” the ministry said, adding that the work was expected to be completed by December 2014.
The programme envisages introduction of environmental coastal protection in India, and development of institutional capacity to meet the long-term needs of sustainable coastal protection and management, it said.
As per the ministry, the programme will improve incomes and reduce poverty in coastal communities in two states by addressing immediate coastal instability problems and medium-term coastal protection and management needs.
The agreements were signed by Venu Rajamony, joint secretary in Economic Affairs and Hun Kim, ADB country director for India.