India inks $350M ADB loans to improve power distribution

India has signed three loan agreements totalling $350 million with ADB to improve the power distribution system in Assam, Gujarat and Madhya Pradesh.

Of this, $200 million will help the Madhya Pradesh government provide 24-hour electricity to rural households in Madhya Pradesh.

"The investment program will help ensure a constant, reliable supply of electricity to more than 2.6 million households, as well as providing new power connections to 1.3 million homes,” said Hun Kim, Country Director of ADB’s India Resident Mission.

In a separate agreement, a $100 million loan was extended to develop a transmission system that will distribute 500 megawatts of solar power from the Charanka Solar Park in Gujarat.

The project will create job opportunities, improve social services and contribute to poverty reduction locally. It will also support power distribution companies in Gujarat and other Indian power utilities to meet part of their clean energy procurement obligations through solar energy.

In addition, ADB has also provided a $50 million loan to support electricity transmission and distribution capacity in Assam.