World Bank Supports India’s Power Systems with US$600 Million
The World Bank today approved a US$600 million loan to the Power Grid Corporation of India, backed by a Government of India guarantee, designed to strengthen the country’s electricity transmission system in order to increase reliable power exchange between regions and states. The Fourth Power System Development Project (PSDP IV) aims to reduce transmission losses and cut the cost of energy through further investments in transmission systems. It will also contribute to the clean energy initiative through both the ability to transfer surplus hydro energy to power deficit regions in India and relieve some of the pressure to build generation facilities, particularly in and around the major load growth centers. Despite a booming economy, India’s growth potential is constrained by inadequate electricity services and limited power generation and supply infrastructure. Over forty percent of the population is without electricity, and the cost of erratic and insufficient power supply is high for...