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Power
Grid get US$ 400mn loan from ADB
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New Delhi, March 28, 2008
Power Grid has signed a loan agreement
with Asian Development Bank (ADB), Manila for US$ 400 mn. Loan
Agreement has been signed by Dr. R.P. Singh, Chairman and
Managing Director, POWERGRID and Mr. Tadashi Kondo, Country
Director, INRM, ADB, in the presence of officials from
Ministry of Finance and Ministry of Power. Government of India
has extended guarantee for this loan.
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This Loan is part of ADB’s newly
introduced loan facility called Multi-tranche Financing
Facility (MFF), which is based on time-sliced approach under
which loan assistance can be availed in number of tranches
depending upon funding requirement. This is a unique feature
in itself. A Framework Financing Agreement (FFA) for MFF had
been signed with ADB for US$ 600 million. The MFF loan will be
drawn in two tranches, of which this loan of US$ 400 million
constitutes first tranche.
Ministry of Power has accorded high
priority to the development of power sector. It has set an
ambitious task of providing “Power to all by 2012”. Massive
resources are required to carry out the expansion plan and
meet the targets. Towards this, POWERGRID has not only tapped
domestic markets, but has also been arranging funds from
multilateral funding agencies. Signing of this loan of US$ 400
Million between POWERGRID and ADB is a major milestone in this
direction.
The loan will be utilized to finance part
of the fund requirement of POWERGRID’s projects, namely (i)
+800kV High Voltage Direct Current (HVDC) lines under “North
Eastern – Northern/ Western Region Interconnector-I Project”
and (ii) 800kV High Voltage Alternating Current (HVAC)
Substations under “Upgradation of Transmission Capacity from
Uttarakhand Project”.
The identified transmission projects
involves the latest technology of +800kV HVDC bipole lines and
Gas Insulated Substation at 800kV level. North Eastern –
Northern/ Western Region Interconnector-I Project involves
1800 kms long +800kV HVDC 6000MW bipole lines from Biswanath
Chariali in Assam of Northeastern Region to Agra in western
part of Uttar Pradesh of Northern Region to facilitate
transmission of power from Northeastern Region and Sikkim/
Bhutan to power deficit regions like Northern and Western
Regions. Upgradation of Transmission Capacity from Uttarakhand
Project involves transformation capacity addition of 5000 MVA,
and will facilitate transmission of hydro power generated from
Tehri valley to Northern Region constituents.
POWERGRID, which is responsible for
developing and operating Regional and National Transmission
Grid, has a long association with ADB and has already availed
three loans amounting to US$ 925 million for its various
transmission projects.
This is the fourth loan to POWERGRID from
ADB having a 25 year term.
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