November 26, 2001

'28'

POWERGRID RECEIVES WORLD BANK LOAN ASSISTANCE OF U.S. $ 450 MILLION

        The second direct loan from the World Bank to the Power Grid Corporation of India Limited (PGCIL) of U.S. $ 450 million has become effective from November 21^st 2001, after fulfillment of all necessary formalities. This will now facilitate disbursement of funds from the World Bank. This loan has enabled PGCIL to move a step closer towards establishment of a National Grid in the country. The important projects to be implemented through this loan include the East-North Inter-Connector-I (Sasaram HVDC); East-South Inter-Connector-II (Talcher-II Transmission System), state of the art Unified Load Despatch Schemes in the Eastern and Western Regions of the country for better grid management and efficient operation of the power system.

        This loan would also help PGCIL in realizing its goal of diversification into the telecom business. The commitment of the World Bank to fund the telecom programme of PGCIL has also removed all uncertainties towards requisite fund mobilization for such ventures.