ADB issues $250 mn loan to India to expand energy efficiency investments

The ADB previously approved a USD 200 million loan to public sector company EESL in 2016.

The Asian Development Bank (ADB) has signed a USD 250 million loan agreement with the Centre to expand energy efficiency investments in India, according to an official statement.

The loan agreement to provide loan to Energy Efficiency Services Limited (EESL) was signed on Monday.

"The Asian Development Bank (ADB) and the Government of India on December 16, 2019 signed a USD 250 million loan to Energy Efficiency Services Limited (EESL) to expand energy efficiency investments in India that will benefit agricultural, residential and institutional consumers," according to the statement.

In addition to this, USD 46 million financing will be provided from the Clean Technology Fund (CTF) that will be administered by the ADB.

The ADB previously approved a USD 200 million loan to public sector company EESL in 2016 for demand side energy efficiency sector project that focused on efficient lighting and appliances.

EESL will also explore business models to generate greater public demand for e-vehicles to support India's current push for electric vehicles.

Besides the loan amount, a technical assistance (TA) of USD 2 million will be provided to support EESL in implementing the project, including a gender action plan, mobilising private sector participation in energy efficiency services, identifying new business opportunities, and transferring knowledge about successful models, the statement said.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel