ADB, India ink $500 million loan pact to improve power connectivity

The central government has signed a $500 million loan agreement with ADB to improve large-scale power transmission in the country. The loan will facilitate the financing of 800 kV high voltage direct current converter stations and 765 kV transmission systems in the country. It will help Power Grid Corporation of India Limited (Powergrid) add 6,000 MVA of transmission capacity between Raigarh in Chhattisgarh and Pugalur in Tamil Nadu; 2,000 MVA transmission capacity between Pugalur in Tamil Nadu and North Thrissur in Kerala; and 3,000 MVA transmission capacity to accommodate renewable energy flows from Bikaner in Rajasthan by 2020. The loan will account for about 19 per cent of the project cost of $2,581 billion, with Powergrid providing counterpart financing of $2,081 billion.