New Delhi: The Asian Development Bank (ADB) has agreed to give a 20-year loan of $175 million to Power Grid Corp. of India Ltd to finance a proposed $450 million transmission project for transferring power from new solar power parks to the grid.
The loan agreement was signed on Thursday, an official statement from the power ministry said. State-owned Power Grid will make an equity contribution of $135 million for the project.
The new transmission lines will help in evacuating 2,500 megawatt (MW) of power from solar parks in Bhadla in Rajasthan and 700 MW from Banaskantha in Gujarat. The proposed transmission facility will also aid in increasing solar power generation by 4.2 gigawatt (GW) and cut carbon emissions by over 7 million tonnes every year, said the statement.
The union cabinet had in February decided to double the solar park capacity in the country to 40,000 MW in three years. The plan is to add 50 new ultra-mega solar parks to the 34 under construction in 21 states.
In addition to the ADB loan, Power Grid’s high voltage transmission project will include a $50 million co-financing facility from the Clean Technology Fund (CTF), which is a component of the climate investment funds aimed at helping developing countries to adopt low carbon technologies.
The project will improve the capacity and efficiency of interstate transmission networks, particularly in transmitting the electricity generated from the new solar parks to the national grid, said the statement.