Commodity Online

WASHINGTON: The state owned Power Grid Corporation of India would get USD 600 million loan from World Bank to strengthen its electricity transmission system.

Announcing the loan backed by Government of India guarantee, the bank said in a statement that the Fourth Power System Development Project would aim to reduce transmission losses and cut the cost of energy through further investments in its systems.

The project is part of the bank s long term partnership with Power Grid, initiated when the firm was formed in 1989.

The bank has made three direct loans to Power Grid since 1993. During this period, the company has nearly tripled its transmission network, its assets have grown more than eight fold to USD 7.3 billion and revenues have increased more than six times to over USD 1 billion, it said in a statement.