ADB to lend $500 million to India for power transmission projects
The Asian Development Bank (ADB) will lend $500 million to India to improve large-scale power transmission from the northern to the southern regions, while helping integrate renewable energy in the country’s power system.business Updated: Feb 23, 2017 18:24 IST
The Asian Development Bank (ADB) will lend $500 million to India to improve large-scale power transmission from the northern to the southern regions, while helping integrate renewable energy in the country’s power system.
The ADB loan will make up around 19% of the $2.58 billion total project cost while Power Grid Corporation Ltd will provide $2.08 billion.
The loan has a 20-year term, including a five-year grace period.
“Expansion of inter-regional connectivity enables bulk power transfer to the southern region which has, at times, been affected by power shortages. This loan will also help strengthen the transmission system to accommodate renewable energy-generation capacity,” said Leonardus Boenawan Sondjaja, the deputy country director of ADB’s India Resident Mission.
The project, which is expected to be completed by December 2020, will help build 800 kilovolt (kV) and 320 kV high voltage direct current (HVDC) converter stations and 765 kV power transmission systems in India.
It will also help Power Grid add 6,000 MVA of power transmission capacity between Raigarh in Chhattisgarh and Pugalur in Tamil Nadu, 2,000 MVA transmission capacities between Pugalur in Tamil Nadu and North Trichur in Kerala, and 3,000 MVA transmission capacities to accommodate renewable energy flows via Bikaner in Rajasthan.
First Published: Feb 23, 2017 18:23 IST