For improving power transmission systems in India, the Asian Development Bank (ADB) last March offered $826 million loans. The money will be used to build transmission systems that will help transfer electricity from surplus regions to power-deficit regions efficiently. The ADB and the Indian government signed three agreements to this effect in Delhi. 
 
 A $500 million sovereign-guaranteed loan and a $250 million non-sovereign corporate loan will be used to establish an over 1,300-km inter-regional transmission link to allow the bulk transfer of electricity from independent power producers in Chhattisgarh to areas of high demand in the north, including the National Capital Territory Region of Delhi.
 
 The 3rd loan of $76 million (sovereign) will connect the western grid region to the union territories of Daman and Diu and Dadra and Nagar Haveli, the Finance Ministry said in a statement. The sovereign loans will have a 25-year term, including a five-year grace period with an annual interest rate determined in accordance with ADB's LIBOR-based lending facility, it said.
 
 The loan will significantly strengthen Power Grid Corporation's corporate credit capabilities and access to future foreign commercial borrowings in the international capital market, Venu Rajamony, Joint Secretary in the Finance Ministry, said