World Bank to invest $1.5B in Indian energy sector

The World Bank expects to invest about $1.5 billion in India's energy sector over the next two years.

It has already placed $4 billion in the segment.

“Our investment in energy sector is around $4 billion and another $1.5 billion is under preparation — means projects that are not finalised but are under the process of finalisation,” World Bank’s India Energy team leader Ashish Khanna said.

He said that $1.5 billion would be extended to the energy sector “somewhere between now and 2014″.

Khanna said the entity brings in a lot of international knowledge on what India is grappling with and how other countries have resolved these issues. “But often, you can’t get cookie-cutter solutions… because local conditions are different. We help set up model institutions like NTPC and Power Grid which take forward energy development of the country.

“World Bank’s role is in facilitation of dialogue and hand holding governments,” he said. The multilateral agency has supported the country’s largest hydro-power plant at Nathpa Jhakri in Himachal Pradesh and would be providing financial assistance for the proposed Vishnugad Pipalkoti Hydro Electric Project in Uttarakhand.

Among others, the multilateral lender is also helping in improving power transmission and distribution in Haryana and Maharashtra, while it had extended a loan of $1 billion to state-run Power Grid Corporation of India in September, 2009.