April 25, 2007	Wednesday	Rabi-us-Sani 07, 1428

MANILA, April 24: The Asian Development Bank (ADB) said on Tuesday it has approved a loan of $620 million to ensure a sustainable power supply in the Indian state of Madhya Pradesh.

The loan will support India's $5.3 billion power supply programme which will run from 2007-2012 to meet the country's increasing electricity demand brought about by its economic expansion.

The six-year investment programme includes installation of an additional capacity of more than 6,000mw to provide households reliable electricity six years from now.

ADB funding, to be disbursed in five tranches, will finance projects involving energy efficiency improvements in transmission, distribution and “non-physical investments” to attract private companies to form partnerships for power distribution, the ADB said in a statement in Manila.

The loan will also go to the establishment of an energy conservation fund and other energy efficiency initiatives.

“A secure and predictable electricity supply will enable social and economic benefits to materialise, and will ensure improved conditions for schools, hospitals, and other social services,” ADB finance specialist Neside Tas-Anvaripour said in the statement. —AFP