New loan signed between Powergrid and World Bank

New Delhi: Power Grid Corporation of India Ltd. (POWERGRID), the Central Transmission Utility, under the aegis of Ministry of Power, Government of India, signed a loan agreement with The World Bank for USD 600 Million on March 28, 2008. Loan Agreement has been signed by Dr. R.P. Singh, Chairman and Managing Director, POWERGRID and Ms. Isabel M. Guerrero, Country Director, India, The World Bank, in the presence of officials from Ministry of Finance and Ministry of Power. Government of India has extended guarantee for this loan.

The loan will be utilized to fund a basket of POWERGRID’s transmission projects during XI plan, which shall strengthen the transmission system in the power deficits regions of India and also enhance the inter-regional power transmission capacity in the country. Under the loan assistance, POWERGRID shall implement HVDC terminal stations at Balia in Uttar Pradesh and Bhiwadi in Rajasthan alongwith inter-regional and grid strengthening schemes for formation of strong and vibrant National Grid.

Ministry of Power has accorded high priority to the development of power sector. It has set an ambitious task of providing power to all by 2012. Massive resources are required to carry out the expansion plan and meet the targets. Towards this, POWERGRID has not only tapped domestic markets, but has also been arranging funds from multilateral funding agencies. Signing of this loan of USD 600 Million between POWERGRID and The World Bank is a major milestone in this direction.

POWERGRID, which is responsible for developing and operating Regional and National Transmission Grid, spanning across the length and breadth of the country, has a long association with The World Bank. POWERGRID has earlier availed loans from The World Bank for about USD 1.7 billion for various transmission projects.