India, ADB sign $48 mn loan agreement for Assam

India and the Asian Development Bank (ADB) have signed a $48 million loan agreement towards improving Assam's power distribution system, an official statement said on Tuesday.

"The project will help Assam to enhance capacity and efficiency of its power distribution system to improve electricity service to end users," the Finance Ministry said.

This is the second tranche loan of the $300 million multi-tranche financing facility for the Assam Power Sector Investment Programme that was approved by the ADB Board in July 2014.

The first tranche loan of $50 million was signed in February 2015.

"This loan will help strengthen the state's distribution system, improve energy efficiency and reduce technical and commercial losses," said M. Teresa Kho, Country Director of ADB's India Resident Mission.

The loan of $48 million from ADB makes up to 80 per cent of the total project cost of almost $60 million, with the state government providing counterpart finance of $12 million.

The loan has a 25-year term, including a five-year grace period with an annual interest rate.

--IANS

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