• by IPS Correspondents (manila)
• Wednesday, December 14, 1994
• Inter Press Service

MANILA, Dic 14 (IPS) - The Asian Development Bank (AsDB) has approved a 150 million dollar loan for India to come up with more efficient use of energy in its industries.

The project aims to offset the energy shortfall in India that is hampering the full potential of market-oriented reforms to spur industrial growth. Better use of energy, curbing leakage and pilferage will be equivalent to building new power plants, experts say.

The loan from the Manila-based development bank's ordinary capital resources can be repaid over 15 years has a grace period of five years. Interest on the loan will be determined in accordance with the bank's pool-based variable lending rate system for U.S. dollar loans which currently is 6.68 percent.

The project will also support India's strategy of fostering sustainable industrial development, the Bank said in a statement Wednesday.

India will use the loan to carry out energy sector reforms into the demand side management of energy-intensive industries.

The project will also assist the government's efforts to reduce energy shortages by increasing energy efficiency and improve the overall efficiency of the assisted enterprises.

AsDB says it hopes the project will promote international competitiveness in India's industrial sector and serve to integrate environmental considerations in project design and implementation.

The Bank loan will finance a portion of the investment requirements for energy efficiency and environmental improvement during the period 1995-97.

The Industrial Development Bank of India, which has expertise in implementing energy efficiency and pollution control projects, will implement the project.

The scope of subprojects from public and private firms will include: modification of existing production processes by installing equipment required for energy efficiency and optimisation of overall plant operations.

Technological restructuring of existing production facilities and energy efficiency-related licensing and other technology acquisition will also be carried out, AsDB said.

© Inter Press Service (2014) — All Rights Reserved. Original source: Inter Press Service

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