ADB to give $200 mn for power projects in Assam

Multilateral lending agency the Asian Development Bank (ADB) will provide $200 million (over Rs 900 crore) in three installments to India for financing power projects in Assam.

The government and ADB today signed an agreement for $60.3 million loan as the first tranche under ADB's multi-tranche financing facility (MFF) for Assam power sector enhancement investment programme, the Finance Ministry said in a statement.

ADB, the statement said, would provide the funds to India in three trenches of $60.3 million, $89.7 million and $50 million.

The MFF towards the programme over the period 2009 to 2014 is in line with the government's mission of 'Power for all by 2012' to provide electricity to all households at an affordable price by 2012 as per Electricity Act 2003, it said.

Ninety per cent of the amount would be provided as grant, while 10 per cent would be extended as loan to the Assam government.

BS