ADB to extend $100 million loan to Gujarat for solar power
New Delhi, 13 September, 2011
The Asian Development Bank (ADB) will extend USD 100 million (about Rs 475 crore) loan for solar power initiatives in Gujarat.
The multilateral lender’s board of directors has approved the financing of USD 100 million for Gujarat Solar Power Transmission Project.
In a statement on Tuesday, ADB said the funds would be used for a substation, transmission lines and other equipment to collect and distribute solar power generated by plants in the Charanka Solar Park in Gujarat’s Patan district.
“The loan from ordinary capital resources will have a 25-year term, with a 5-year grace period. The Government of Gujarat will provide counterpart funds of nearly USD 37 million, for a total project cost of almost USD 137 million,” it noted.
Charanka Solar Park, that is targeting over 500-MW power generation, is one of the large-scale solar energy parks that is being planned by Gujarat.
“By putting in reliable power transmission facilities in the solar park, ADB will help draw in private sector developers, while providing a model which can be replicated to scale up solar power in a significant manner in India,” ADB Senior Climate Change Specialist Naoki Sakai said.
The project would also provide vocational skills training for up to 300 people in target areas as well as energy-based livelihood programs for up to 100 poor women.
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