World Bank Approves Loan for Greening Himachal Pradesh’s Development Policy
6 September 2012: The World Bank approved a US$100 million loan to support India's Himachal Pradesh (HP) State in moving towards a green growth path, through the protection of watersheds in the mountainous region and the development of sustainable hydropower. A second development policy loan is expected to follow, with funding from the Clean Technology Fund (CTF).
The development policy loan to "Promote Inclusive Green Growth and Sustainable Development" will support HP State in adapting to the effects of climate change, through emphasis on community watershed management and protection. It also will support the implementation of a socially and environmentally sustainable hydropower policy under which one percent of power sales from each project will be distributed annually to households in project-affected areas, with additional transfers to families below the poverty line. The project also will seek to identify incentive-based economic policies to reduce industrial emissions and promote sustainable tourism practices.
The loan, from the International Bank for Reconstruction and Development (IBRD), has a maturity of 18 years including a grace period of five years. [World Bank Press Release]