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This is the fourth tranche of the loan under the Uttarakhand Power Sector Investment Programme that will help develop infrastructure for a new 400 kV (kiloVolt) substation at Pipalkoti and a transmission line from Srinagar to Kashipur at 400 kV level in Uttarakhand, ADB said in a release.
"The project will help supply up to 2,500 MW (Megawatts) of hydropower from Uttarakhand to Northern India grid. This will enhance hydropower development in the state of Uttarakhand," ADB said.
The agreement was signed by Nilaya Mitash, Joint Secretary, Department of Economic Affairs and Hun Kim, Country Director of ADB's India Resident Mission. The project agreement was signed by Sanjeev Kumar Sharma, Deputy Secretary (Energy), on behalf of the Government of Uttarakhand.
"Hydro resource royalties will contribute to economic growth of Uttarakhand, while the north India region will also benefit from clean and reliable energy at competitive prices," Mitash said.
The project activities will also generate employment opportunities in the state, he said.
"The transmission and substation facilities are mainly aimed at evacuating the hydropower generation from various private power producers. This will catalyse private sector development and leverage to vast finance needs in hydropower development in Uttarakhand," Kim said.
This loan from the ADB's Ordinary Capital Resources has a 25-year term including a grace period of five years, commitment charges of 0.15% and interest rate to be determined in accordance with ADB's LIBOR-based lending facility, it said.
The Uttarakhand government will provide the counterpart funds of $64.29 million for a total project investment cost of $214.29 million under this tranche, it added.
