The Asian Development Bank (ADB) has announced that it will invest $750m for power transmission systems to help India transfer electricity to regions where the need is greatest.
Government owned transmission utility Powergrid said that it will use the investment to spur growth and reduce poverty through smart electricity transfer.
ADB’s funding consists of a $500m sovereign-guaranteed loan and a $250m non-sovereign corporate loan.
The loan is to finance the national grid improvement project that will allow the bulk transfer of 3 GW from IPPs in the western state of Chhattisgarh to areas of high demand in the north. This will be achieved through the establishment of a 1300 km inter-regional transmission link using 800 kV HVDC technology. The funds will be made available to Powergrid.
To develop the national grid, Powergrid plans to invest $22bn to double the size of the current transmission network by 2017.
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