ADB okays $250m Indian loan

ADB okays $250m Indian loan

MANILA (Dow Jones): The Asian Development Bank said Friday it
has approved a US$250 million loan for a national power grid in
India for interstate electricity transmission.

The ADB also extended a partial credit guarantee to Power Grid
of India Ltd., or Powergrid - the project's proponent - to back
the government agency's plan to secure a 15-year, $120 million
loan from a syndicate of commercial banks.

The project, to be completed in 2005, will also enhance the
autonomy of Powergrid, a government agency responsible for the
construction and operation of India's main electricity
transmission network, the ADB said.

The project will allow Powergrid increase power distribution
efficiency by sharing power reserve margins, trading surplus
electricity, and long-term power transfers between regions with
low-cost hydropower or coal resources, the bank said.