ADB will provide a USD 100 million loan to Indian state of Gujarat
The Asian Development Bank (ADB) announced that it will provide a USD 100 million loan to the Indian state of Gujarat for a transmission project to help speed the construction of large solar plants On September 13th, 2011. The ADB Board of Directors has approved the financing for transmission lines, a substation, and other equipment for the Gujarat Solar Power Transmission Project. This project will connect plants in the Charanka Solar Park to the grid.
ADB Senior Climate Change Specialist Naoki Sakai said “ADB will help draw in private sector developers By putting in reliable power transmission facilities in the solar park, while providing a model which can be replicated to scale up solar power in a significant manner in India.” this project will make it more cost effective for private companies to set up large solar plants, The ADB states. The Charanka Solar Parkhas a target of 500 MW of solar generating facilities. It will be located in the state’s Patan district.
The ADB loan will have a five year grace period and a 25 year term. For a total project investment of USD 137 million, The Government of Gujarat will also provide funds of almost USD 37 million. The government of Gujarat and The Gujarat Energy Transmission Corporation (Vadodara, Gujarat, India) will build the transmission project. The ADB announced a three year, USD 2.25 billion project to support the construction of 3 GW of solar power in Asia On May 3rd, 2010.
