New Delhi [India], May 3 : The Board of Directors of the Asian Infrastructure Investment Bank (AIIB) on Wednesday approved a loan amount of USD160 million in support of the Andhra Pradesh 24x7 Power project, with an objective to strengthen the power transmission and distribution system in the state.
The project is part of the Government of India's Power for All Program that was launched in 2014 to provide an efficient, reliable and affordable electricity supply to all consumers across selected states within five years from the start of implementation of the program in each state.
Andhra Pradesh is one of the first states selected for the rollout of the Power for All program. "AIIB supports its members in their transition towards a low-carbon energy mix by promoting the improvement of energy efficiency, such as upgrading the existing transmission and distribution networks," said president of AIIB, Jin Liqun.
He further expressed his delight on AIIB working so closely with India, which is the second largest shareholder, in energy and other infrastructure sectors.
"We expect the Andhra Pradesh - 24x7 Power for All project to be the first of many projects AIIB invests in India," he added.
The project aims to support the implementation of the 24x7 Power for All plan in Andhra Pradesh by strengthening the transmission and distribution network, increasing network capacity, improving system reliability and supporting operational reforms to improve the commercial performance of the state's distribution companies.
It will directly contribute to the economic development of Andhra Pradesh and India by increasing delivery of reliable, grid-based electricity to households, business and the agricultural sector.
The project is co-financed with the World Bank..