Power Grid gets $600 m loan from
World Bank
Mar 20, 2008 - McClatchy-Tribune Regional News
- Samiran Saha - Hindustan Times, New Delhi
The World Bank on Wednesday approved a $600-million
loan to power transmission giant Power Grid Corporation
of India (PGCIL) to strengthen the electricity transmission
system to increase reliable power exchange between
regions and states.
The Power System Development Project -IV of PGCIL
aimed at reducing transmission losses would help cut
cost of energy through further investments in transmission
systems.
The project is expected to allow the transfer of
power from surplus hydro electric power states to
power deficient regions and help creating power generation
facilities.
India's growth potential is constrained by inadequate
electricity services and limited power generation
and supply infrastructure. Over 40 per cent of the
population is without electricity, and the cost of
erratic and insufficient power supply is high for
industry as well as households, which causes 60 per
cent of Indian firms and a large percentage of homes
to rely on captive generation.
"India's policy reforms in the power sector are
beginning to pay off," said Isabel Guerrero, World
Bank Country Director for India.
"The sector's financial performance is improving
and more and more villages are being electrified.
At the same time, the need to boost the rural economy
where about 30 percent of villages are not electrified
and improve the investment climate are placing additional
demands on the country's power supply system. This
project will enable more power to reach the people
across the country," Guerrero said.
The World Bank has been involved in the reform and
development of the transmission sector in India, and
specifically in the creation and strengthening of
the Power Grid. The World Bank has made three direct
loans to Power Grid since 1993. During this period,
the company has nearly 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 US$1 billion.
|
