India Signs $250 Million Loan Agreement With ADB To Expand Energy Efficiency Investments In India

The Asian Development Bank (ADB) and the Government of India on 16th December 2019 signed a $250 million loan to Energy Efficiency Services Limited (EESL) to expand energy efficiency investments in India that will benefit agricultural, residential and institutional consumers. In addition, $46 million financing will be provided from the Clean Technology Fund (CTF), to be administered by ADB.

ADB previously approved a $200 million loan to EESL, a public sector energy service company, in 2016 for Demand Side Energy Efficiency Sector Project that focused on efficient lighting and appliances.

The signatories to the loan agreement were Sameer Kumar Khare, Additional Secretary (Fund Bank and ADB), Department of Economic Affairs in India's Ministry of Finance, and Kenichi Yokoyama, Country Director of ADB's India Resident Mission.

Khare said after the loan signing that the project is expected to contribute to the mission of Government of India to promote energy efficiency and meet Government's commitments to reduce energy intensity of the economy. Further elaborating on the issue, he said, introduction of energy-efficient technologies in eligible states including smart meters, distributed solar photovoltaic systems and electric vehicles will help reduce electricity network losses and reduce greenhouse gas emissions.