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Loan granted for transmission upgrades in Himachal Pradesh (India)

The Asian Development Bank (ADB) is providing loans of up to $350m for transmission system upgrades to help the Indian state of Himachal Pradesh take greater advantage of its vast hydropower resources. The ADB approved the multitranche financing facility for the Himachal Pradesh Clean Energy Transmission Investment Program, with a first investment of $113m. It will help expand the supply of power, both in and outside the state, as well as promoting job opportunities, increased social services and poverty reduction. Himachal Pradesh, a small mountainous state with five major rivers, has about a quarter of India's total potential hydropower resources. It wants to scale up generation, but its transmission facilities in certain locations are currently unable to handle large amounts of additional power. The program will fund badly needed new high voltage lines and other transmission infrastructure to allow the state to increase output to meet growing local and national demand for electricity.