AIIB grants US$160 mln loan for Indian power project

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The Asian Infrastructure Investment Bank (AIIB) has approved a loan of 160 million US dollars to finance a power project in India, the bank said on Wednesday.

The project, co-financed with the World Bank, is part of the Indian government's 24x7 Power for All program, and will strengthen the power transmission and distribution system in the southeastern Indian state of Andhra Pradesh.

The AIIB said in a statement that the project is approved with the objective of strengthening the power transmission and distribution system in the state of Andhra Pradesh.

President of Asian Infrastructure Investment Bank (AIIB) Jin Liqun speaks at a news conference in Beijing, January 17, 2016. /VCG Photo

"AIIB supports its members in their transition toward a low-carbon energy mix by promoting the improvement of energy efficiency, such as upgrading the existing transmission and distribution networks," said AIIB President Jin Liqun.

The project "will be the starting point for AIIB to extend its assistance to other countries in Asia moving towards an 'Energy for all' initiative," said D.J. Pandian, vice president and chief investment officer of AIIB.

Customers get a shave in a barber shop in Kotla Mubarakpur, New Delhi, India, on Thursday, August 2, 2012. A series of failures and excessive demand on the national grid knocked out power for 640 million people in northern and central India on July 31, a day after a separate blackout left 360 million in seven states without lights. /VCG Photo

The AIIB was established in 2015 and started operation in January 2016 with 57 founding members and an authorized capital of 100 billion US dollars. Its aim is to provide financing for infrastructure improvements and projects in Asia.

The bank’s membership has increased to 70 this year, with 13 new members approved in March. India is the second largest shareholder after China.