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Areas in which the loan to be used: The major portion of the ADB loan ($130.3 million) planned to be used to finance infrastructure such as transmission lines. The remaining ($1.9 million) is planned be used for strengthening the internal capacity of the Bihar State Electricity Board (BSEB). The loan is also planned to be used to install new transmission lines and to renovate and modernize transmission and distribution facilities to improve the quality and reliability of the state's electricity supply network. ADB assured to provide a technical assistance grant of $300,000 for training and other capacity development to improve project and financial management in BSEB. ADB also assured to assist BSEB with project implementation and construction supervision, including training in the maintenance and operation of high-voltage distribution systems (HVDS).
Rural High Voltage Distribution System Transmission System Modernisation Micro, Small and Medium Enterprises Energy Saving Project (Phase II) New and Renewable Energy Development Project Metro Rail Project in Bangalore Forestry and Bio-Diversity Project (Phase II) in Rajasthan
What is a Soft Loan? Soft Loan is a financing that offers flexible or lenient terms for repayment, usually at lower than market interest rates. Soft loan is provided customarily by government agencies and not by financial institutions. It is also called a concessional funding.
http://upscportal.com/civilservices/alert/ias-mains-test-series-2011
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