$200-mn ADB loan for Madhya Pradesh power projectsAugust 17th, 2011 - 7:24 pm ICT by IANS
New Delhi, Aug 17 (IANS) The Asian Development Bank (ADB) Wednesday offered a $200 million concessional loan to India to help improve electricity distribution in rural areas of Madhya Pradesh.
This is the first tranche of a $400 million loan approved under the Madhya Pradesh energy efficiency improvement investment programme.
“The programme will help improve electricity distribution in rural areas of Madhya Pradesh, and help in providing reliable 24-hour electricity supply to rural households that will stimulate business, employment and education,” the finance ministry said in a statement.
Venu Rajamony, joint secretary (Multilateral Institutions), Department of Economic Affairs, and Hun Kim, ADB country director for India, signed the loan agreement here Wednesday.
Old distribution lines and transformers result in poor quality supply of electricity in most rural areas of Madhya Pradesh. The ADB loan will be used to help establish separate power feeders for households and agricultural use, install high-voltage distribution systems, provide new power connections and improve the financial sustainability of distribution companies.
“The investment programme will help ensure a constant, reliable supply of electricity which will bring broad benefits to over 2.6 million households and will provide new power connections to 1.3 million homes,” Rajamony said after signing the agreement.
The loan has a 25-year term with a grace period of five years and interest determined in accordance with ADB’s LIBOR-based lending facility. The technical assistance grant comes from ADB’s concessional Technical Assistance Special Fund.
- ADB loan to improve power distribution in India - Feb 27, 2012
- 132 million dollar ADB power project to benefit millions in Bihar - Oct 20, 2010
- Bihar gets $132 mn ADB loan for power projects - Jun 15, 2011
- ADB offers $150 mn loan to improve railway system - Jul 10, 2012
- $826 million ADB loan to India for power transmission - Mar 30, 2012
- ADB gives $300 mn loan for road projects in Madhya Pradesh - Jun 15, 2011
- India gets $250 mn infrastructure loan from ADB - Mar 21, 2011
- ADB offers $52 mn loan to curb coastal erosion in India - Aug 17, 2011
- ADB Extends 315 million dollar for highway overhaul in Karnataka - Nov 29, 2010
- ADB to give $889 million for Himachal, Assam power projects - Jan 19, 2011
- India, ADB ink loan pact for clean energy project in Himachal Pradesh - Jan 18, 2011
- ADB to provide 7.4 billion dollar assistance to India for 2011-2013 - Jan 31, 2011
- ADB signs JV to develop renewable energy in India - Nov 24, 2010
- World Bank extends $130 mn loan for North East development - Jan 20, 2012
- ADB approves 650-mn-dollar loan to help Pakistan rebuild flood-hit infrastructure - Mar 31, 2011
Tags: adb loan, asian development bank, business employment, country director, distribution companies, distribution lines, distribution systems, economic affairs, electricity distribution, electricity supply, energy efficiency improvement, finance ministry, financial sustainability, loan agreement, multilateral institutions, power connections, power feeders, power projects, quality supply, voltage distribution