India’s PGCIL seeks US$1 billion ADB loan for Green Energy Corridors

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
It will be used to fund several transmission projects over the next three or four years. flickr: Tapas Ganesh

State-owned transmission firm Power Grid Corporation of India Limited (PGCIL) has sought loan assistance of US$1 billion from the Asian Development Bank (ADB), according to energy and mines minister Piyush Goyal.

The loan will include a US$500 million sovereign guaranteed loan and a non-soveriegn loan for the other US$500 million.

It will be used to fund several transmission projects over the next three or four years, including a Green Energy Corridor poject. The Corridors are for transmiting power from solar rich states to those with high energy demand. They will also help integration of renewables into the grid and increase their share.

The loan will be used for Inter State Transmission Systems (ISTS). These include 765kV DC connections between Ajmer and Bikaner in Rajasthan and another connection between Bikaner and Moga. The fund will also be used for establishing a 2×1500 MVA, 765/400 kV substation at Bikaner and for work on a circuit in Bikaner.

In May Goyal said that Inter-State Transmission Projects are expected to be funded with 30% equity from PGCIL.

The loans will also be used for two major links between the states of Chhattisgarh, Tamil Nadu and Kerala.

Grid issues are expected to hamper India's solar plans in the coming two years as green energy corridor projects can take up to five years to complete, while solar takes just 12-18 months.

Read Next

September 13, 2021
The Indian state of Tamil Nadu is planning to develop 4GW of additional solar projects as well as new battery energy storage systems, according to local media.
September 10, 2021
Independent power producer ReNew Power has commissioned a 250MW portion of a 300MW solar plant in the Indian state of Rajasthan.
September 6, 2021
India-based renewables developer Adani Green Energy has raised US$750 million through a green bond offer, securing the debt and equity needed to reach a 25GW renewables target.
September 2, 2021
Reliance Industries is close to acquiring solar module manufacturer REC Group, according to media reports in India, as part of the conglomerate’s expansion into the renewable energy sector.
August 31, 2021
Azure Power is on track to increase its operating solar capacity by at least a third this fiscal year following a first quarter that saw the independent power producer (IPP) return to profitability.
August 26, 2021
India is on track to install an additional 4,580MW of solar capacity in the second half of 2021 after seeing deployment marginally increase in Q2, according to Bridge to India.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 6, 2021
Solar Media Events
October 19, 2021
BRISTOL, UK
Solar Media Events
December 1, 2021