ADB gives $720m for J&K power project

Srinagar: Jammu and Kashmir chief minister Ghulam Nabi Azad has succeeded in seeking $720 million Asian Development Bank assistance for the power section in the state. An official statement released here on Saturday said that the chief minister had an hour-long meeting with Union minister for power Sushil Kumar Shinde to discuss the approval for the same.

The ADB loan comes at an interest rate of six to seven per cent and would be used for construction of two power projects of Karthai and New Ganderbal, for the capacity building in power sector. The state government, the statement added, expects the ministry’s approval for ADB project by November 15. Mr Azad also discussed with Mr Shinde the financial closure of the second phase of the 450-MW Baglihar hydropower project on river Chenab. 'The latter assured him full support following which the chief minister directed the state economic advisor Dr Haseeb Draboo to meet chairman, National Power Finance Corporation for tying up the loan,' it said. 'The Jammu and Kashmir government hopes that the deal would be finalised within three months.' The chief minister also raised the issue of transfer of Dul-Hasti power project in his hometown to the state from the NHPC. Mr Shinde assured him that decision to this effect would be taken within next two months. The NHPC which constructed the project is reluctant to hand over it to Jammu and Kashmir which goes against the agreement the two sides had reached over its use for a specified period..