According to India’s finance Ministry, the project will benefit agricultural, residential and institutional consumers.
In addition, $46 million financing will be provided from the Clean technology Fund (CTF), to be administered by ADB, the ministry stated on 17th December.
The ADB previously approved a $200 million loan to EESL, a Public sector energy service company, in 2016 for Demand Side Energy Efficiency Sector Project that focused on efficient lighting and appliances.
Sameer Kumar Khare, Additional Secretary, Department of Economic Affairs in India’s Ministry of Finance and Kenichi Yokoyama, Country Director of ADB’s India Resident Mission signed the agreement.
The project is expected to contribute to the mission of Government of India to promote energy efficiency and meet Government’s commitments to reduce energy intensity of the economy, Khare said.
This is one of the few ADB projects specially focused on demand-side energy efficiency targeting upstream efficiency opportunities and business models that can be scaled up in India and other ADB developing member countries, Yokoyama said.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty.
In 2018, it made commitments of new loans and grants amounting to $21.6 billion.
Established in 1966, it is owned by 68 members — 49 from the region.