ADB’s Recent Loans for Assam and Himachal Pradesh
Recently, the Asian Development Bank (ADB) has signed two loan agreements with India for projects in Assam and Himachal Pradesh. The agreement for Assam has been signed to improve the power generation capacity of the state while the agreement for Himachal Pradesh has been signed for expanding horticulture.
- ADB has signed the loan agreement of USD 231-million loan for improving the electricity generation in Assam. This will be done through the construction of a 120-megawatt (MW) hydroelectric power plant.
- This amount is the third tranche of the Power Sector Investment Program approved by ADB in the state in the year 2014.
- The hydroelectric project will be constructed over the Kopili River. This project will help in increasing the electricity supplied from clean energy by 469 gigawatt-hour (GWh) by the year 2025 and reducing greenhouse gas emissions by 3.6 lakh tonnes of carbon dioxide annually.
- The part of the loan will be utilized by the Assam Power Generation Corporation Limited (APGCL).
- The other loan agreement of ADB is for USD 10-million project readiness financing (PRF).
- This loan will help in designing, capacity building, and piloting activities for a project that aims to expand horticulture production and farm household income in Himachal Pradesh.
Asian Development Bank (ADB)
Established in the year 1966, ADB is a regional development bank headquartered in Metro Manila, Philippines. The bank provides loans for promoting economic and social development in Asia. At present, it has 68 members.