The Hindu Business Line : ADB offers $1.7 mn to conserve energy in MP

NEW DELHI: The Asian Development Bank (ADB) will provide technical assistance of USD 1.7 million (about Rs 8.5 crore) to Madhya Pradesh for setting up an energy conservation fund for improving the efficiency of the power projects in the state.

The energy conservation fund (ECF) will facilitate the financing of revenue-generating energy efficiency projects implemented by public and private sector entities and it will develop a model that could be replicated in other states of India, ADB said in a release.

The ADB will provide USD 1.7 million through the Second Danish Cooperation Fund for renewable energy and energy efficiency in rural areas. The Madhya Pradesh government will contribute an equivalent of USD 400,000, the release added.

The Danish fund supports the ADB's work in reducing poverty and improving the living conditions in communities that are underserved by national power grids and other forms of modern energy.

Under its power sector investment program, the Madhya Pradesh government has sought assistance of USD 5 million from the ADB as initial seed capital for the ECF. The state government will complement this with funds collected from a special electricity sa les levy.

“ADB's technical assistance will support ECF to ensure it has adequate operational resources for its first five years in operation, after which it is expected to become financially independent,'' the ADB said.

The multilateral agency added that India's energy efficiency projects alone could create nearly 25,000 MW, and energy conservation projects could save 23 per cent of total generation. “India has vowed to make power available to all its citizens by 2012,' ' it added. – PTI

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