The Asian Development Bank (ADB) and the Government of India has signed a $50 million loan agreement for the second Assam Power Sector Investment Program.
The first tranche loan of the $300 million multi-tranche financing facility will fund generation capacity enhancement and distribution efficiency improvement sub-projects in the State.
The new project will finance investments to supplement the generation capacity by replacing inefficient generating plants and constructing of new hydropower plant.
The program is designed to promote the power generation capacity of the state.
The program also takes care of the distribution systems in the state in order to meet the growing energy demands.
Since 2003, ADB has supported Assam’s power sector with five loans totaling $450 million, helping the State endorse key energy modifications.
Last month, ADB extended loans of up to $100 million to help India’s solar power developer, the ACME group for acquiring new solar plants.
In another initiative, ADB invested part of a USD 50 million committed equity capital in a Welspun Energy group company, which plans to add at least 200 MW of solar power projects and 100 MW of wind power projects by March 2016.
In China, ADB signed an agreement with 13 banks to support Beijing Enterprises Water Group Company (BEWG) for the promotion of high standard wastewater treatment and reuse.
This will be the largest such loan arranged by ADB with a $288 million B-loan agreement. It is part of ADB’s financing package to the project, including an ADB-financed loan of $120 million which was later upgraded to $408 million.
ADB is strongly committed to India’s sustainable growth, providing financial assistant to infrastructure development in line with the government’s timely announced projects and priorities.
Besides, ADB’s India program supports core infrastructure sectors such as energy, transport, and urban services, improving water resources management, agri-business infrastructure development and skills development.
The Narendra Modi Government is providing all support to develop North-East region in terms of connectivity and trade.
Sabeena Wahid
[email protected]