Banks invest $150M in $1B power transmission project

The Asian Development Bank (ADB), with co-financing from Asian Infrastructure Investment Bank (AIIB), will provide $150 million for an ongoing power transmission project in India, whose aim is to deliver more clean energy.

The funding will be used for additional power transmission network components that will connect with the ADB-financed Green Energy Corridor and Grid Strengthening Project, reports EBR.

The clean energy project will include 400 kV transmission components in the southern state of Tamil Nadu to connect at Pugalur with the long-distance grid systems funded by ADB, and will be expanded further to increase energy transmission to cover more states in the country.

As part of the initiative, the inter-regional grid systems between the western and southern regions are to be built and upgraded, with addition of new high voltage substations and transmission lines in the northern part of the country.

The ADB financing for this project comprises of a $500 million loan backed by the government, along with an additional $500 million lending to Power Grid.

Source: Energy Business Review