ADB Bank Signs $250 Million Loan For Indian Government’s 2022 Clean Energy Target

The Asian Development Bank have signed a loan of $250 million earlier this week to promote clean and efficient energy. The attempt is focusing at expanding energy efficiency investments in India that will benefit agricultural, residential and institutional consumers. According to a statement by the Ministry of Finance, $46 million financing will also be given from the Clean Technology Fund. The entire loan is approved to Energy Efficiency Services Limited, which was previously approved a $200 million loan to focus on efficient lighting and appliances, as per the sources.

According to Sameer Kumar Khare, Additional Secretary, Department of Economic Affairs, “The project is expected to contribute to the mission of Government of India to promote energy efficiency and meet government’s commitments to reduce the energy intensity of the economy.” The introduction of energy-efficient technologies in eligible states including smart meters, distributed solar photovoltaic systems and electric vehicles will also help to reduce electricity network losses and greenhouse gas emissions, he further added. 

Especially the smart metering component, included in the project, is believed to be useful in addressing billing and collection inefficiencies. Apart from curating the conventional sources of energy, the decision is also aimed to generate greater public demand for e-vehicles to support India’s current push for electric vehicles, as per the sources.