ADB to lend India $300m for power sector
Afp, Manila
The Asian Development Bank (ADB) said Saturday it would provide up to 300 million dollars in loans to help strengthen and expand the power sector in one of India's poorest states. It would be extended through a seven-year financing facility that would cover part of the investment program including construction of needed infrastructure for the improvement of the northern state of Uttaranchal. The Himalayan state has undeveloped hydropower potential, the ADB said, adding that India needed about 12 billion dollars to harness this potential. About five billion dollars would be needed over the next six years to fund projects to increase power generation and improve transmission and distribution and to finance policy reforms and improved financial management, the ADB said in a statement issued from its headquarters in the Philippine capital. The ADB financing would cover the construction of small hydropower plants, expansion of the transmission system, and "support to enable government agencies to carry out the program's activities cost-effectively."
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