ADB and India have Signed a $ 69 million Loan Agreement
As the final and sixth tranche of the $ 620 million Madhya Pradesh Power Sector Investment Program, the Asian Development Bank (ADB) and India have signed a $ 69 million loan agreement. An official press release said on 29 March 2007 this multi-tranche financing facility was approved by ADB. Yesterday, the sixth tranche had signed by Ministry of Finance on behalf of the Government of India, Department of Economic Affairs, Mr. Venu Rajamony, Joint Secretary (Multilateral Institutions) , and Mr. Hun Kim, ADB’s Country Director for India.
The sixth tranche will assist the Madhya Kshetra Vidyut Vitaran Company distribution losses and reduce power transmission in 117 towns. It will also support the M.P. Power Trading Company, the M. P. Paschim Kshetra Vidyut Vitaran Company, and the M. P. Poorv Kshetra Vidyut Vitaran Company, set up information technology (IT)-management systems trading companies in the state and linking all parts of the distribution. Over a period of three and a half years, the sixth tranche will be implemented.
The IT management system will have a number of modules, including inventory tracking, energy auditing, and financial management and human resources, which will help the distribution companies increase efficiency. ADB had been a long-standing development partner for Madhya Pradesh, Mr. Hun said. He added ADB has also helped the state through a public resource management loan. It has approved 14 loans amounting to $ 2.27 billion covering the urban, power, rural road and state road sectors on this day.
