The Asian Development Bank will provide $132 million (over Rs 585 crore) for upgrading electricity system in Bihar and a loan package of $120 million (about Rs 532 crore) to Assam towards efforts to combat flooding and erosion.
The loans, which were announced today, have been approved by ADB's board of directors.
In a statement, ADB said it would give $132 million for the Bihar Power System Improvement Project, to upgrade electricity system.
"The funds will be used to install new transmission lines and to renovate and modernise transmission and distribution facilities to improve the quality and reliability of the state's electricity supply network," the statement said.
The Manila-based lender would also be extending a technical assistance grant of $300,000 to improve project and financial management in the Bihar State Electricity Board.
ADB in a separate statement said it would be giving a loan package of up to $120 million to Assam as assistance in combating flooding and erosion.
The loan would be provided for the Assam Integrated Flood and Riverbank Erosion Risk Management Investment Programme, that include both infrastructure improvements and non-physical measures.
"The programme will focus on improving protection for communities in three sub-project areas covering 90 kilometers along the Brahmaputra River...," it noted.
There would also be a linked technical assistance grant of $600,000 from UK's Department for International Development, administered by ADB.
These funds would be used to build up the capacity of those engaged in preparing and implementing community-based flood risk management programmes.