Loan to promote smart electricity transfer in India
A $750 million for power transmission systems that will help India efficiently transfer electricity to regions where the need is greatest, spurring growth and poverty reduction will invested by The Asian Development Bank (ADB). On Friday, the ADB Board of Directors said in a statement issued here from Manila, Philippines that he has approved loan financing for the national grid improvement project. The project will allow the bulk transfer of electricity (3,000 MW) from independent power producers in the western state of Chhattisgarh, to areas of high demand in the north, including the national capital territory of Delhi.
The funds will be made available to POWERGRID. POWERGRID is the Indian government-owned transmission utility. With a peak power deficit of over 12% in 2010, India’s demand for electricity has sharply exceeded supply in recent years. It fuelled by its strong growth. Expansion of the transmission network has not kept pace while the generating capacity has been increasing over the years in India.
Some states have creating interregional transmission ‘corridors and he capacity to generate more power than they need. It will allow them to move surplus electricity to areas short of supply. POWERGRID plans to invest about $22 billion to develop the national grid.
