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ADB to Provide Loan for India Hydropower Projects

India and the Asian Development Bank have signed a loan agreement for $208 million, which is the third tranche of an ADB loan for the Himachal Pradesh Clean Energy Development Investment Program.

India also signed an agreement with ADB for a $89.7 million loan for the Assam Power Sector Enhancement Program (Tranche-II), as part of an overall facility of $200 million.

The government is setting up four run-of-the -river hydropower projects totaling 856 MW in Himachal Pradesh, with funding of around $800 million from the ADB.

The ADB loan provides partial funding for the 195-MW stages II & III of the integrated Kashang hydroelectric project located in the district of Kinnaur and for the 100-MW Sainj hydroelectric project located in Kullu district, an official release said.

Hydropower capacity in India is set to double by 2017, mainly due to start up of new hydro projects, according to a recently-released research report titled "Indian Power Sector Analysis."

India's hydropower generation potential is 300,000 MW, out of which only 145,000 MW can be exploited, RNCOS, a global market research and information analysis firm, reported.

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