New Delhi: The Union Government and the Asian Development Bank on Friday inked a 105 million loan-pact to continue financing the transmission system upgrades in Himachal Pradesh for increased supply of hydropower to the state and the national grid.
The tranche-3 loan is part of the 350 million dollars multi-tranche financing facility (MFF) for Himachal Pradesh Clean Energy Transmission Investment Programme approved by the ADB Board in September 2011. The programme is aimed at developing and expanding the transmission network to evacuate clean and renewable power generated from the state’s hydropower sources to load centers within and outside the state.
It also supports the institutional capacity development of the state transmission utility, Himachal Pradesh Power Transmission Corporation Limited (HPPTCL), as the executing agency for this project.
The loan will have a 25-year term, including a grace period of five years, an annual interest rate determined in accordance with ADB’s lending facility based on the London interbank offered rate (LIBOR), and a commitment charge of 0.15 per cent per year.