ADB to provide a $500 million loan to Powergrid

The Asian Development Bank (ADB) has signed an agreement to provide a $500 million loan to Power Grid Corporation of India Limited (Powergrid) for the development of Green Energy Corridors. The funds will help Powergrid develop the 6,000 MW Raigarh-Pugalur high voltage direct current (HVDC) system and 2,000 MW Pugalur-Trichur HVDC transmission line, covering regions in Chhattisgarh, Tamil Nadu and Kerala. The total cost of the projects is $2.58 billion. ADB’s loan amount will make up for 19 per cent of the total project cost, while Powergrid will provide $2.08 billion. The loan has a 20-year term, including a five-year grace period with an annual interest rate determined in accordance with ADB’s LIBOR-based lending facility.