India seeks $2.5 billion World Bank aid for power projects

Posted By: Religare
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India seeks $2.5 billion World Bank aid for power projects
A recent proposal, seeking a financial aid of $2.5 billion or over Rs 113 billion has been send by the India's power ministry to the World Bank, a release issued by the North Eastern Council (NEC), a regional planning and execution agency for overall development of the north-eastern states, said.

The aid is asked for the project that intends towards transmission and distribution of electricity among the eight northeastern states. The release said, “The union power ministry has recently submitted the Rs 11,348.5 crore proposal to the World Bank."

The release was issued in the two-day 60th NEC meeting held on June 16-17 in New Delhi, headed by the chairman and union Minister of Development of North Eastern Region (DoNER) B.K. Handique. The meeting attended by all the eight chief ministers from the region, discussed the issues such as power scenario, under-construction projects and future electricity generation plan in the northeastern region.

Elaborating the projects to be completed, the release mentioned that the biggest hydro-electric plant Lower Subansiri, in Arunachal Pradesh, with capacity of 2,000 MW is to be completed between 2013-2015. The state currently has the potential to generate 63,257 MW hydro electricity.

Further, talking about the gas project, the release highlighted the first unit of gas-based Palatana power project in southern Tripura to get completed in November 2011, while the second by March 2012. However, at present, Palatana, in Tripura, is experiencing the commissioning 726 MW capacity commercial power project at a cost of Rs.9,000 crore. The project is commissioned by the state-owned Oil and Natural Gas Corporation (ONGC).

Additionally the release mentioned that there would be upgradation of 433 km of road in the six states of the northeastern region at an estimated cost of Rs.1,353 crore and this would be utilized from the loan from Asian Development Bank (ADB).

Read more about: economy, power, world bank
Story first published: Tuesday, June 21, 2011, 9:30 [IST]
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