Economy Current Affairs: Asian Development Bank (ADB) will provide $1-billion loan to the Power Grid Corporation of India for renewable energy transmission and grid expansion in India.
ADB is to provide a $500-million government-backed loan and a further $500-million in non-sovereign lending to Power Grid Corporation of India Limited.
The funds will be used to build and upgrade high-voltage transmission lines and substations in Rajasthan and Punjab, as part of the government’s Green Energy Corridor initiative.
The new transmission lines connecting renewable energy-rich areas to the national grid will enhance connectivity between the regions by bringing clean energy to more people, making the overall Indian power system more efficient, and improving India’s overall energy security.
Earlier this year, the government had announced ambitious plans to achieve a national renewable energy target of 175 GW by 2022.
About 90 per cent of this is expected to be generated from solar and wind sources which are concentrated in a few Indian states.