India inks USD 297 mn loan agreement with ADB

India inks USD 297 mn loan agreement with ADB

The first loan agreement, worth USD 208 million, was for the release of the third tranche out of the total funds committed by the ADB to the Himachal Pradesh Clean Energy Development Investment Programme, the Finance Ministry said in a statement.

"This particular loan provides partial funding for Stages II & III of the Integrated Kashang Hydroelectric Project, totalling 195 MW, located in District Kinnaur; and for the 100-MW Sainj Hydroelectric Project located in Kullu District," the statement said.

The latest agreement is part of a series of loans for four run-of-river hydropower projects totalling 856 MW in Himachal Pradesh, for which the ADB has committed a total of USD 800 million.

The government also signed another USD 89.7 million agreement for the release of Tranche II funds for the Assam Power Sector Enhancement Programme, to which the ADB has committed USD 200 million.

The Tranche II funds will be used to build two 220/132 kV and six 132/33 kV substations, construct 342 km of transmission lines (185 km of 220 kV and 157 km of 132 kV transmission lines) and augment 11 existing substations, the statement added.

"By helping enhance quality and expanded service delivery of electricity in Assam through improved technical, commercial and financial performance and capability of the power sector utilities, the project will create a sustainable state power sector to support inclusive economic growth," ADB Senior Energy Specialist (South Asia Department) Naoki Sakai said.