The World Bank and Asian Infrastructure Investment Bank (AIIB) have together agreed to extend $380 million of loan to Andhra Pradesh towards helping the southern state build a reliable, quality and affordable power supply to citizens.
In a statement, World Bank said it has signed an agreement with the government of India and Andhra Pradesh government to extend $240 million of loan. AIIB has also signed a $140 million loan, which is considered the first such project in India to be co-financed by it.
The World Bank and AIIB will provide loans in a 60:40 ratio for all the components of the project that is aimed at providing 24X7 power for all.
The agreement was signed by the union finance ministry’s joint secretary of economic affairs Raj Kumar, Andhra’s energy department advisor K Ranganathan, AIIB’s vice-president and chief investment officer DJ Pandian and World Bank India’s acting country director Hishan Abdo Kahin.
Under the project, Andhra Pradesh will build new transmission and distribution infrastructure, as well as put in place systems to improve the technical efficiency and commercial performance of its power sector utilities.
The project is part of the government of India’s `Power for All’ programme launched in 2014 and Andhra Pradesh is among the few states selected for the rollout of this programme.