The Asian Development Bank (ADB) has approved a loan of $100 million for a solar power transmission project in Gujarat.
The loan will be used for establishing a sub-station and transmission lines and installation of other equipment to collect and distribute solar power generated at the Charanka Solar Park in Patan district of Gujarat. This is expected to facilitate private companies to set up more cost-effective solar power plants in the park.
A large number of solar energy parks are planned in Gujarat to meet the rising demand for power and to help reduce the use of fossil fuel. The Charanka Park is one of them and it targets an output of over 500 MWs. These parks will provide the developers with the necessary permits and services to accelerate the setting up of the solar plants.
The Indian Government, meanwhile, is aiming at building solar facilities in the country with a total generating capacity of 20,000 MWs by 2022.
The Charanka project will provide vocational skills training for around 300 people, with 30 per cent of them women. Also it will ensure livelihood programmes for up to 100 poor women.
The loan will have a 25-year term with a grace period of five years.
The annual interest rate will be set in accordance with the bank’s LIBOR-based lending facility. The total project cost is about $137 million and the Gujarat Government will provide counterpart funds of nearly $37 million.
