Massive energy initiative in India braced by ADB

India’s largest private power provider is set to receive a USD450 million loan from the Asian Development Bank. The Coastal Gujarat Power Limited said that it intends to use the money for the construction of the 4,000 megawatt Mundra Ultra Mega Power plant, a project that aims to improve carbon efficiency and reduce overall emissions during its first ten years of operations. “The project will not only provide a significant volume of additional electricity to address shortages, it will also promote private investment in power and show good practice in building and financing large-scale power projects in India through public-private partnerships,” ADB representative Takeo Koike said. “India will be dependent upon coal as a fuel for a large portion of its power generation for the foreseeable future as it has no other practical alternatives. The issue is thus to ensure cleaner coal technology is deployed to minimize environmental impacts including the emission of greenhouse gases. This plant will require less coal to generate the same level of output as a conventional plant. Additionally, it will use imported fuel that has lower sulfur and ash content, ensuring it meets national and international emissions standards,” Koike added. (Press release: ADB Lending USD450M for the First Ultra Mega Power Project in India/ADB)

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