ADB OKs $250m loan for India’s power sector

The fund will also help improve the service quality of distribution companies.

The Asian Development Bank (ADB) approved a $250m policy-based loan that will support the financial sustainability of India’s power sector and will boost the country’s transition to renewable energy.

In a statement, the ADB said the fund will help improve the country’s financial performance, corporate governance, and electricity distribution companies' (discom) service quality, and allow a conducive environment for private sector investment.

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For the discoms, the fund will also help enhance its performance in various aspects such as losses, cost recovery, metering and timely payment of dues.

“ADB has been working with the Government of India to help ramp up its transition to clean and renewable energy and facilitate policy actions to ensure a sustainable, inclusive, and climate-friendly power supply,” said ADB Principal Energy Specialist Len George. 

“This policy-based loan will help reduce barriers to scale up commercial financing for clean energy and contribute to India’s fulfilment of its climate change mitigation commitments,” George added.