$600 million World Bank loan for
NEW DELHI - Mar
28 -- The Times of India
State-owned transmission utility Power Grid Corporation
has secured a $600 million loan from World Bank to
fund strengthening of its network to increasing reliability
of power exchange between regions and states.
The money will be used to put in place systems to
reduce transmission losses and also contribute to
the clean energy initiative through both the ability
to transfer surplus hydro energy to power deficit
regions in India and relieve some of the pressure
to build generation facilities, particularly in and
around the major consumption centers.
The bank has made three direct loans to Power Grid
since 1993. During this period, the company has tripled
its transmission network, its assets have grown more
than eight-fold to $7.3 billion, and revenues have
increased more than six times to over $1 billion.
The latest loan will finance the strengthening of
five transmission schemes: East-West Transmission
Corridor, Western Region System Strengthening Scheme
II, Eastern Region System Strengthening Scheme I,
Balia-Bhiwadi HVDC Bipole System and North-West Transmission
The bank's partnership with Power Grid represents
a sound and replicable model for engagement with middle-income
countries, said Pedro Sanchez, World Bank senior energy
specialist and team leader for the project. "The
Bank has assisted Power Grid to achieve world-class
operations and management by financing $2.37 billion
of its investment program," Sanchez added.