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$750-mn ADB loan for Powergrid project

$750-mn ADB loan for Powergrid project

The Asian Development Bank (ADB) will extend a loan of $750 million for the national power transmission improvement project of Power Grid Corporation of India. The loan will finance the project for bulk transmission of 3,000 MW of electricity from independent power producers in Chhattisgarh to areas in the north, including Delhi.A 1,300 km inter-regional link will be established for the purpose using 800 kV High Voltage Direct Current (HVDC) technology. Creating inter-regional transmission corridors will allow them to move surplus electricity to areas short of supply.

The assistance will act as an anchor transaction in the total project cost of $2.25 billion and serve as a catalyst for commercial financiers to be part of the project, according to an ADB report. The funding will consist of a $500 million sovereign guaranteed loan and $250 million non-sovereign corporate loan.

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