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PGCIL in process of finalising $750 million loan from ADB

08 Dec 2011 Evaluate

Power Grid Corporation of India (PGCIL) is in the process of finalising $750 million loan from the Asian Development Bank (ADB) for one of its transmission projects. PGCIL would utilize this loan for establishing a High Voltage Direct Current (HVDC) inter-regional transmission system between the Northern (Haryana) and Western (Chhattisgarh) region. This inter-regional transmission system is part of comprehensive transmission scheme for transfer of power from Independent Power Producers' generation projects coming up in Chhattisgarh.

Of the total $750 million loan from ADB which PGCIL proposed, loan amount of $500 million shall be availed through Government of India guarantee while the loan amounting to $250 million shall not carry any sovereign guarantee by the government and would be on commercial terms and conditions.

PGCIL is India’s principal electric power transmission company. It owns and operates most of India’s interstate and inter-regional electric power transmission systems with inter-regional power transfer capacity of about 20,800 MW and wheels nearly 45% of total power generated across India.

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