NEW DELHI: Power Grid Corporation India Ltd (PGCIL) has got a $400-million loan from the Asian Development Bank (ADB) for a slew of transmission projects.
A loan agreement was signed by the PGCIL Chairman, Mr R.P. Singh, and the ADB Country Director, Mr Tadashi Kondo, here on Thursday.
"PGCIL has geared up to award contracts for projects valuing about $300 million progressively in next three months out of the total loan of $400 million, which is a major achievement in its own right," Mr Singh said in a statement. The Government has extended a guarantee for the 20-year loan that will be utilised to fund a basket of transmission projects, including the National Grid project.
PGCIL would use the loans for setting up transmission infrastructure for transmitting 2,500 MW of power from the Kudankulum Atomic Power Plant and Neyveli Lignite Power Plant to Andhra Pradesh, Tamil Nadu, Kerala and Pondicherry.
This is the third ADB loan to PGCIL. Earlier, the power utility had obtained $275 million and a $250 million loan from the Manila-based multilateral funding agency.