ADB to give $889 million for Himachal, Assam power projects

January 19th, 2011 - 9:59 pm ICT by IANS  

New Delhi, Jan 19 (IANS) Two Indian states of Himachal Pradesh and Assam have signed agreements worth a total of $889.7 million with the Asian Development Bank (ADB) for development of their respective energy sectors.”The ADB approved an $800 million loan to the Himachal Pradesh government for hydro power generation,” said a finance ministry statement Wednesday.

The ADB funding for the hydro-power projects forms about 40 percent of the total investment in the 195 MW Kashang hydroelectric project and the 100 MW Sainj hydroelectric project in the northern state.

According to the statement, this is the largest assistance give by the ADB for power generation in the country.

The current funding is a part of the ADB’s $208 million assistance for the Himachal Pradesh Clean Energy Development Investment Programme.

“This (project) is part of central government’s priority to supply clean renewable energy power projects,” said Venu Rajamony, joint secretary, department of economic affairs, finance ministry.

The other loan worth $89.7 million was sanctioned by the ADB for the up-gradation of transmission and distribution of power in the northeastern state of Assam.

“The project aims to increase power carrying capacity from 766 MW to 1,883 MW by 2014,” the statement added.

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