The Asian Development Bank (ADB) will provide up to 300 million U.S. dollars to help meet investment needs to strengthen and expand the power sector in Uttaranchal, India, an ADB report said on Friday.

The amount will be in the form of an innovative new seven-year financing facility, from which individual loans will be taken out for specific projects under the government of Uttaranchal's comprehensive power sector roadmap, according to the report.

Uttaranchal, one of India's poorest states, has undeveloped hydropower potential estimated at 20,000 megawatts. Harnessing this capacity will meet the state's needs for clean and efficient energy and allow it to export power to surrounding states, generating funds to support investment in rural areas and other productive sectors.

ADB will finance part of the investment program from 2006 to 2012, covering the construction of small hydropower plants, expansion of the transmission system, and support to enable government agencies to carry out the program's activities cost- effectively.

Source: Xinhua