HomeCurrent AffairsGovernment of India and the ADB sign $105 million loan for Hydropower Transmission in Himachal Pradesh.
November 17, 2018
Government of India and the ADB sign $105 million loan for Hydropower Transmission in Himachal Pradesh.
The government of India and the ADB sign $105 million loans for Hydropower Transmission in Himachal Pradesh.
November 17, 2018.
The Government of India and the Asian Development Bank (ADB) today signed a $105 million loan to continue financing the transmission system upgrades in Himachal Pradesh for increased supply of hydropower to the state and the national grid. The loan will have a 25-year term, including a grace period of 5 years, an annual interest rate determined in accordance with ADB’s lending facility based on London interbank offered rate (LIBOR) and commitment charge of 0.15% per year. It is the third tranche part of the $350 million multi-tranche financing facility (MFF) for Himachal Pradesh Clean Energy Transmission Investment Program approved by the ADB Board in September 2011.
Mr. Sameer Kumar Khare, Additional Secretary (Fund Bank and ADB), Department of Economic Affairs, Ministry of Finance, who signed on behalf of the Government of India; and Mr. Kenichi Yokoyama, Country Director of ADB’s India Resident Mission, who signed for ADB were the signatories to the loan agreement.
The program is based on developing and expanding the transmission network to evacuate clean and renewable energy produced from the hydropower sources of the state to load centers inside and outside the State. It also supports the institutional capacity development of the state transmission utility, Himachal Pradesh Power Transmission Corporation Limited (HPPTCL), as the executing agency for this project.
Mr. Yokoyama said, “This last tranche under the MFF will help sustain confidence among existing and potential hydropower developers about the availability of sufficient transmission capacity for evacuation of power from hydropower generation sources in Himachal Pradesh.”
Mr. Khare after signing the loan agreement said,“ This particular loan will help Government of Himachal Pradesh to benefit electricity consumers in the state and throughout northern India, by increasing the transmission system capacity for inflow of the hydropower generated in the state into India’s national grid.”
Established in 1966, ADB is owned by 67 members—48 from the region. In 2017, ADB operations totaled $32.2 billion, including $11.9 billion in co-financing. It is committed to achieve a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty.