Fulfilling its earlier commitment, India has approved a soft loan of $160 million for three power projects, one hydropower plant and two transmission lines.
Handing over an approval letter to the Finance Ministry yesterday, the Exim Bank of India informed the sanctioning of the soft loan for the 220-KVA Koshi corridor transmission line, 132-KVA Solu corridor transmission line and the 32-MW Rahughat hydropower plant that is under construction, according to chief of the foreign aid coordination committee under the Finance Ministry Madhu Marasini.
The loans have been sanctioned under the first phase of a $250 million loan package commitment made by the Indian government a couple of years back during the visit of then premier Dr Baburam Bhattarai.
"The loan is expected to help ease the acute power shortage in the country," he said, adding that it will help the eastern industrial corridor get rid of the power crisis.
Lack of transmission lines has become a key hurdle currently as many independent power producers are constructing hydropower plants.
The construction of six medium-sized hydro power projects in the eastern region — popularly known as super six projects — with a combined capacity of 130 MW has been halted due to lack of transmission lines."Their construction work will start again, as the Exim Bank of India has approved the loan," he added. "It will mainly help in overcoming the power outage problems being faced by industries in the Koshi Industrial Corridor that is one of the largest industrial corridors in the country."