ADB aid for Assam
Bussinessline Bureau

Kolkata, Feb. 23

Asian Development Bank (ADB) is to provide, in first tranche, a sum of $60.3 million to the Union Government for funding Assam Power Sector Enhancement Programme, according to a release issued by Assam State Electricity Board (ASEB).

The agreement on the loan, being provided under ADB's Multitranche Financing Facility, was signed at Guwahati recently. Mr Hun Kim, Country Director, ADB; Ms Anuradha Thakur, Director, Union Ministry of Finance; Mr A.K. Sachan, Chairman, ASEB, among others, were present.

ADB will provide a total of $200 million in three tranches of $60.3 million, $89.7 million and $50 million over the five-year period till 2014.

An estimated 90 per cent of the ADB fund will be made available to Assam as grant while the balance 10 per cent will attract 10 per cent rate of interest. The Assam Government on its part will be required to provide the rupee equivalent of $114.6 million.