The Asian Development Bank (ADB) will release a fresh tranche of $113 million of a $350-million loan to India for the Himachal Pradesh Clean Energy Transmission Investment Programme.
The government of India today signed an agreement with the ADB for the first tranche ($113 million) of the multi-tranche financing facility.
The project involves a total estimated investment of $437.85 million, which includes financing of $87.85 million by the state government of Himachal Pradesh.
The project involves upgradation of transmission system to help Himachal Pradesh take greater advantage of its vast hydropower resources. ''It will help expand the supply of power to industry, commerce and households, within and outside the state, and thereby contribute to job creation and poverty reduction,'' a government release said.
Venu Rajamony, joint secretary (multilateral institutions) in the department of economic affairs signed the agreement with Hun Kim, ADB country director for India.
''The programme will fund much needed new high-voltage lines and other transmission infrastructure to allow the state to increase output to meet growing local and national demand for electricity,'' said Kim, ADB country director for India.