ADB to Provide $200 Million Loan to Finance Energy Efficient Lights and Pumps in India
The Asian Development Bank (ADB) will provide a $200 million (~Rs.13 billion) loan to finance energy efficient lights and water pumps in India.
The $200 million (~Rs.13 billion) ADB loan is from ADB’s ordinary capital resources (OCR) and will have a 20-year term, including a grace period of 5 years, at an annual interest rate determined in accordance with ADB’s London interbank offered rate (LIBOR)-based lending facility, stated the ADB.
The funds received will be provided to Energy Efficiency Services (EESL). The EESL will make loans available for installing light-emitting diode (LED) streetlights by municipalities and LED bulbs, tube lights, and electric fans by households and institutions, and for installing energy-efficient water pumps.
“The installation of energy-efficient equipment will give significant energy savings. We expect to see 30 percent savings from agricultural water pumps, about 80 percent from households and institutions LED lighting, and about 50 percent from LED streetlights,” said L. B. Sondjaja, Deputy Country Director of ADB’s India Resident Mission.
Installation of millions of energy-efficient lights in streets and homes as well as energy-efficient water pumps across India will lead to energy savings of around 3,800 gigawatt-hours annually.
Mercom previously reported, that EESL distributed 90 million LED bulbs under the Unnat Jyoti by Affordable LEDs for All (UJALA) program in the financial year 2015-16. In the past few months ADB loaned $675 million (~Rs.44 billion) to the Power Grid Corporation of India in two separate transactions for development of transmission in India.
Saumy is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.