15 Dec, 2011, 08.40PM IST, PTI

HP Government signs pact with ADB for power transmission project funding

NEW DELHI: The government entered into an agreement with the Asian Development Bank for the first tranche of $113 million for the Himachal Pradesh Clean Energy Transmission Investment Programme which will upgrade transmission system in the state.

An agreement to this affect was signed between the two sides here today, an official release said.

The $437.85 million Himachal Pradesh Clean Energy Transmission Investment Programme is a multi-tranche financing facility project, in which the ADB will contribute to $350 million.

Speaking on the occasion, ADB Country Director for India Hun Kim said the programme will fund new high voltage lines and other transmission infrastructure to allow Himachal Pradesh to increase output to meet growing local and national demand for electricity.

He said that it will also enable the recently formed standalone transmission utility, H P Power Transmission Corporation Ltd to strengthen its financial and asset management capabilities.

The loan has a 25-year term including a grace period of five years. H P Power Transmission Corporation Ltd will implement the programme which is expected to be completed in December, 2017.