The AIIB, in which India is the second largest shareholder after China, has approved the project with the objective to strengthen the power transmission and distribution system in Andhra Pradesh.
May 3, 2017
China-sponsored Asian Infrastructure Investment Bank (AIIB) approved USD 160 million loan for a power project in Andhra Pradesh, the first credit from the bank for an Indian project. The AIIB, in which India is the second largest shareholder after China, has approved the project with the objective to strengthen the power transmission and distribution system in Andhra Pradesh, said a bank statement.
The ’24×7 Power for All’ project is part of Government of India’s ‘Power for All programme’ that was launched in 2014 to provide an efficient, reliable and affordable electricity to all consumers across selected states within five years from the start of implementation.
The project is co-financed by the World Bank. Andhra Pradesh is one of the first states selected for the roll out of the programme. “AIIB supports its members in their transition towards a low-carbon energy mix by promoting the improvement of energy efficiency, such as upgrading the existing transmission and distribution networks,” said Jin Liqun, President of the bank.
The project aims to support Andhra Pradesh by strengthening the transmission and distribution network, increasing network capacity, improving system reliability and supporting operational reforms to improve the commercial performance of the state’s distribution companies, the statement said.
It will directly contribute to the economic development of the State of Andhra Pradesh and India by increasing delivery of reliable, grid-based electricity to households, business and the agricultural sector, it said.
