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India signs multiple loan agreements with ADB for development projects in Himachal Pradesh and Assam

January 3, 2021: The Government of India on December 30th, 2020 signed a $10 million project readiness financing (PRF) agreement for projects in Himachal Pradesh and $ 231 million loan for Assam with Asian Development Bank (ADB).

The $10 million PRF for Himachal Pradesh will finance piloting activities, and design and capacity building for an ensuing project that aims to expand horticulture production and farm household income of Himachal Pradesh.

Dr. C. S. Mohapatra, Additional Secretary, Department of Economic Affairs in the Ministry of Finance signed both the agreements for the Government of India, and Mr. Hoe Yun Jeong, Officer-in-Charge of ADB’s India Resident Mission, signed for ADB.

“The PRF project aims to ensure implementation readiness with prior testing of new production technologies and marketing systems so that the ensuing project is cost-effective and gets completed in a timely manner to enhance farm profitability,” said Mr. Jeong in a statement.

As per the statement released by the Ministry of Finance, the PRF project in Himachal Pradesh will finance pilot projects like rehabilitation of 16 irrigation schemes for water extraction, distribution and storage; developing 17 subtropical horticulture plots for ultra-high density production of selected fruits; fencing horticulture plots to protect crops from animal predation; and forming community horticulture production and marketing associations to build their capacities for business and marketing.

The loan for Assam will be used to augment electricity generation capacity in the state of Assam through construction of a 120 MW hydroelectric power plant that will enhance availability of electricity for households. The proposed hydroelectric project is a run-of-the-river project over Kopili river which will help increase electricity supplied from clean energy by 469 GWh by 2025. The project will reduce greenhouse gas emissions by 360,000 tons of carbon dioxide annually. 

Part of the loan will be used for project capacity building of Assam Power Generation Corporation Limited (APGCL), like enterprise resource planning system and improve women’s participation and contribution in training and community led interventions.

Established in 1966, Asian Development Bank (ADB) promotes social and economic development in Asia. ADB also makes sustained efforts to eradicate extreme poverty in Asia and Pacific. It has 68 members including India, China, and Japan. It also has non-Asian developed countries as members. The bank assists its members and partners by providing loans, technical assistance, grants, and equity investments to promote social and economic development.