In a first credit to an Indian project, Asian Infrastructure Investment Bank (AIIB) approved USD 160 million loan for a power project in Andhra Pradesh.
The AIIB, in which India is the second largest shareholder after China, has approved the project with the objective to strengthen the power transmission and distribution system in Andhra Pradesh.
The ‘24×7 Power for All’ project is part of Government of India’s ‘Power for All programme’ that was launched in 2014 to provide an efficient, reliable and affordable electricity to all consumers across selected states within five years from the start of implementation.
The project is co-financed by the World Bank. Andhra Pradesh is one of the first states selected for the roll out of the programme.
The project aims to support Andhra Pradesh by strengthening the transmission and distribution network, increasing network capacity, improving system reliability and supporting operational reforms to improve the commercial performance of the state’s distribution companies.
The AIIB opened in 2016 with 57 founding members and authorised capital of USD 100 billion.
China is the largest shareholder with 26.06 per cent voting shares. India is the second largest shareholder with 7.5 per cent followed by Russia with 5.93 per cent and Germany 4.5 per cent.