ADB inks $208 million credit agreement with GOI for Himachal



Shimla: The Government of India today signed a loan agreement with the Asian Development Bank (ADB) for $208 million for Tranche 3 of investment programme titled ‘Himachal Pradesh Clean Energy Development Investment Program’. A Press and Inforamtion Bureau release issued here today said that this facility is for a series of loans to provide funding for four run-of-river hydropower projects totaling 856 MW in Himachal Pradesh for an amount of $ 800 Million from ADB. This particular loan provides partial funding for stages II & III of the Integrated Kashang Hydroelectric Project totaling 195 MW located in District Kinnaur and for the 100 MW Sainj Hydroelectric Project located in District Kullu.

Joint Secretary (MI), Department of Economic Affairs, Ministry of Finance Venu Rajamony signed the loan on behalf of the Government of India (GOI). He said on the occasion, “We appreciate ADB’s support to this project. This is part of GOI’s priority to supply clean renewable energy power projects. We look forward to successful completion of the project. The Himachal Pradesh Power Corporation, the Implementing Agency for this project is also taking the lead in development and accreditation of its project for availing carbon credits as part of the Clean Development Mechanism under the UNFPCC. We also look forward to development and realization of Clean Development Mechanism (CDM) benefits by the project authorities.”

Himachal Pradesh’s focus on hydropower development is vital to meet all in-state demand by providing affordable, reliable power to its residents as the state currently meets only about 50 percent of its power demand through its own power generating capacity. Harnessing this hydropower will also enable the export of excess power to the rest of the country for the benefit of power deficient states. Senior Energy Specialist at ADB’s South Asia Department Andrew Jeffries said that Himachal is focusing on clean energy development. It will provide jobs to state residents and would further the country’s goal of meeting its energy needs through treading a low carbon path.

The Executing Agency for the loan program is the Multi-purpose Projects & Power Department of the Government of Himachal Pradesh and Himachal Pradesh Power Corporation Ltd. is the Implementing Agency. These two projects are expected to be commissioned by 2016.

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