Power Grid Corporation of India Ltd, the central transmission utility, has signed a loan agreement with the World Bank for $400 million on January 27, 2009. The loan agreement was signed by SK Chaturvedi, chairman and managing director, PowerGrid, and World Bank in the presence of officials from Ministry of Finance and Ministry of Power. The Government of India has extended guarantee for this loan.
The loan will be utilised to fund a basket of PowerGrid’s transmission projects during XI plan, which shall strengthen the transmission system in various regions of country and also enhance the inter-regional power transmission capacity in the country. Under the loan assistance, PowerGrid shall implement regional and grid strengthening schemes for formation of strong and vibrant national grid.
The Ministry of Power has accorded high priority to the development of power sector. It has set an ambitious task of providing power to all by 2012. Massive resources are required to carry out the expansion plan and meet the targets. Towards this, PowerGrid has not only tapped domestic markets, but has also been arranging funds from multilateral funding agencies.
PowerGrid, which is responsible for developing and operating regional and national transmission grid, spanning across the length and breadth of the country, has a long association with the World Bank. The company has earlier availed loans from the World Bank for more than $2 billion for various transmission projects and further assistance of $1 billion is under discussion.
The loan will be utilised to fund a basket of PowerGrid’s transmission projects during XI plan, which shall strengthen the transmission system in various regions of country and also enhance the inter-regional power transmission capacity in the country. Under the loan assistance, PowerGrid shall implement regional and grid strengthening schemes for formation of strong and vibrant national grid.
The Ministry of Power has accorded high priority to the development of power sector. It has set an ambitious task of providing power to all by 2012. Massive resources are required to carry out the expansion plan and meet the targets. Towards this, PowerGrid has not only tapped domestic markets, but has also been arranging funds from multilateral funding agencies.
PowerGrid, which is responsible for developing and operating regional and national transmission grid, spanning across the length and breadth of the country, has a long association with the World Bank. The company has earlier availed loans from the World Bank for more than $2 billion for various transmission projects and further assistance of $1 billion is under discussion.
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