Energy / Electricity transmission and distribution

The overall objective of ADB's operational strategy for India is to reduce poverty by achieving faster and broad-based economic growth, developing human resources, narrowing gender disparities, strengthening good governance for socioeconomic development, enhancing and sustaining private sector activities, protecting the environment, and promoting regional cooperation. However, India's lack of access to concessional ADB assistance constrains ADB's operations in India. The operational strategy addresses poverty reduction primarily through support for infrastructure-led growth.

Consistent with its overall country strategy for India, ADB focuses its operations on removing infrastructure bottlenecks and improving supply-side by supporting priority public investments and catalyzing private investments in the power sector. Particular emphasis is on creating a conducive private sector environment, including the regulatory framework, competitive mechanisms, and appropriate tariff setting mechanisms, as well as risk-sharing and risk-mitigating measures. In this respect, the role of build-own-transfer (BOT) projects, which are developed under competitive and transparent processes to meet the infrastructure needs of ADB's developing member countries, is significant in attracting private sector investment to the energy sector. Public-private partnership is also encouraged to take advantage of the higher operational efficiencies that private operators can achieve. The project is consistent with ADB's sector strategy.