The World Bank is likely to disburse $500 million to the Power Grid Corporation of India for strengthening solar transmission, according to a senior executive of the state-owned company.
"The World Bank has expressed its intent to give the loan. The development is in the initial stage and talks are still going on. We expect to finalise this in three to four months," the executive, who did not want to be named, told ET.
Six or seven solar projects with a combined capacity of 7,000 MW will be added to the main grid, he added.
The World Bank loan will provide impetus to the government's plan of generating 100,000 MW from solar energy by 2022.
The entire loan amount is expected to be disbursed over three years, with the first tranche likely in six to eight months, the executive said, adding that several solar projects will benefit from the funds.
He, however, said list of projects that will benefit from the loan is yet to be finalised.
According to the executive, the loan, which will have a moratorium for five years, will have to be repaid in 15 years at "around the same rate of interest at which the World Bank lends to developing countries".
Source: The Economic Times
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