The central government and Asian Development Bank (ADB) signed loan agreement to support lending by India Infrastructure Finance Company Limited (IIFCL). The loan worth Rs 21.56 billion was signed to fund at least 13 sub-projects through IIFCL, including roads and renewable energy projects. Also, another loan of Rs 7.35 billion has been given for multi-tranche financing facility for Himachal Pradesh Clean Energy Transmission Investment Program which was approved by the ADB Board in September 2011.
According to media sources, the program aims at developing and expanding the transmission network to evacuate renewable energy generated from the state’s hydropower projects to load centres within and outside the state.
This loan agreement has come at a crucial point as hydropower generation is all set to pick up pace in Himachal Pradesh with significant changes in the hydro policy announced recently by the state government.