The government today signed three loan agreements totalling $350 million with multilateral funding agency Asian Development Bank (ADB).
Of this, $200 million loan will help the Madhya Pradesh government to provide 24-hour electricity to rural households, a Finance Ministry statement said.
"The investment programme will help ensure a constant, reliable supply of electricity to more than 2.6 million households, as well as providing new power connections to $1.3 million homes," ADB India Resident Mission Country Director Hun Kim said.
Besides, a $100-million loan arrangement was signed to develop a solar power transmission system in Gujarat.
The loan would help develop a transmission system that will distribute 500 megawatts of solar power from the Charanka Solar Park in Gujarat.
"The project will create job opportunities, improve social services and contribute to poverty reduction locally. It will also support power distribution companies in Gujarat and other Indian power utilities to meet part of their clean energy procurement obligations through solar energy," the statement said.
Also a $50 million loan agreement was signed for enhancing electricity transmission and distribution capacity in Assam.
"This loan will help strengthen the state's transmission and distribution system, and reduce technical and commercial losses," Joint Secretary in the Department of Economic Affairs Prabodh Saxena said.
