Indian government has secured a credit facility of $150m from the Asian Development Bank (ADB) to finance the hydropower project in Uttarakhand state.

The loan agreement was signed by Department of Economic Affairs Joint Secretary Nilaya Mitash and ADB India Resident Mission country director Hun Kim.

The facility represents the fourth tranche of the loan under the Uttarakhand Power Sector Investment Program, reported Business Standard.

Indian government is expected to add $64.29m for the total project investment of $214.29m for the project that comprises the development of infrastructure for a new 400 kV substation at Pipalkoti and a transmission line from Srinagar to Kashipur at 400 kV level in Uttarakhand.

The project will supply up to 2,500MW of hydropower from Uttarakhand to Northern India grid, ABD stated.

Commenting on the developments, ADB India Resident Mission country director Hun Kim noted: "The transmission and substation facilities are mainly aimed at evacuating the hydropower generation from various private power producers."