February 16, 2010 12:44:50 am
The finance ministry and the Asian Development Bank (ADB) signed an agreement worth $60.3 million today for the Assam Power Sector Enhancement Investment Program in Guwahati. The loan is the first tranche under ADBs multi-tranche financing facility (MFF) for the project.
ADB will provide $200 million to India in three tranches of $60.3 million,$89.7 million and $50 million. The loan is spaced over a period of five years from 2009-2014. The Assam Power Sector Enhancement Investment Program is a part of the UPAs plan of Power for all by 2012. The latter seeks to provide electricity to all households at an affordable price by 2012 as per Electricity Act 2003.
According to the agreement,the Indian government will provide the amount as 90 per cent grant and 10 per cent as loan to the state government of Assam. The state government will invest about $114.6 million in the program.
The project will improve Assams transmission and distribution infrastructure including reducing system losses and improve quality and reach of power supply. The loan agreement signing ceremony was attended by Hun Kim ADB Country Director and Anuradha Thakur (Director,Ministry of Finance),and Assam state government officials.
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