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ADB to lend India $620 million to secure power supply

ADB to lend India $620 million to secure power supply
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First Published: Tue, Apr 24 2007. 03 56 PM IST
Updated: Tue, Apr 24 2007. 03 56 PM IST
AFP
Manila: The Asian Development Bank (ADB) said Tuesday it has approved a loan of $620 million (Rs2,551 crore) to ensure a sustainable power supply in the Indian state of Madhya Pradesh.
The loan will support India’s $5.3 billion power supply programme which will run from 2007-2012 to meet the country’s increasing electricity demand brought about by its economic expansion.
The six-year investment programme includes installation of an additional capacity of more than 6,000 megawatts to provide households reliable electricity six years from now.
ADB funding, to be disbursed in five tranches, will finance projects involving energy efficiency improvements in transmission, distribution and “nonphysical investments” to attract private companies to form partnerships for power distribution, the ADB said in a statement in Manila.
The loan will also go to the establishment of an energy conservation fund and other energy efficiency initiatives.
“A secure and predictable electricity supply will enable social and economic benefits to materialise, and will ensure improved conditions for schools, hospitals, and other social services,” ADB finance specialist Neside Tas-Anvaripour said in the statement.
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First Published: Tue, Apr 24 2007. 03 56 PM IST