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WB lends India power system $400 mn

World Bank approves loan backed by Indian Govt for the Power Grid Corporation to increase electricity transfers between regions.

india Updated: Jan 20, 2006 15:55 IST

The World Bank on Thursday approved a $400 million loan backed by the Indian government for the Power Grid Corporation of India to increase electricity transfers between the regions of the country.

The Indian government has identified the power sector as key to achieving sustainable economic growth and to reducing poverty but the goal is threatened by widespread power shortages, the World Bank said in a statement.

"India continues to face severe power shortages that translate into substantial losses to the economy. It stifles development of industry and commerce, increases the cost of doing business, and reduces productivity," said Michael Carter, World Bank Country Director for India.

First Published: Jan 20, 2006 12:31 IST