Question: The recent loan agreement signed between India and ADB for $175 million is for the construction of…
(a) Transmission systems
(b) Solar Park
(c) Hydro Power Projects
(d) None of the above.
Ans: (a)
- On 29th March, 2017, the Asian Development Bank (ADB) approved a $175 million loan to Power Grid Corporation of India Limited (POWERGRID) to help construction of high voltage transmission systems to evacuate power generated from new mega solar parks to the interstate grid
- As part of the assistance, ADB will also administer a $50 million co-financing loan equivalent from the Clean Technology Fund (CTF) and a $5.8 billion component of the Climate Investment Funds.
- This is aimed at providing developing countries resources to expand efforts in utilizing low carbon technologies and transitioning to clean, renewable energy sources.
- The project will improve the capacity and efficiency of interstate transmission networks, particularly in transmitting the electricity generated from the new solar parks to the national grid.
- Apart from the evacuation of 2,500 megawatts (MW) of power from solar parks in Bhadla, Rajasthan, and 700 MW from Banaskantha, Gujarat, POWERGRID is also including two additional sub projects that will increase solar power generation by 4.2 gigawatt and lessen carbon emissions by over 7 million tons every year.
- The Solar Transmission Sector Project is also the first project to be implemented following the usage of agency-level country safeguards and procurement systems for POWERGRID to speed up processes while providing autonomy and ownership of the project.
Reference:
https://www.adb.org/projects/49214-002/main#project-pds
http://www.uniindia.com/india-adb-sign-175-mln-loan-agreement/business-economy/news/834517.html