India and the ADB signed a 100$ million agreement for a solar power transmission system in Gujarat.
They are using an innovative public private partnership (ppp) model, which is able to create jobs, contributes to poverty eradictation and improves social services. As a result it will support Gujarats power distribution facilities as well and helps them to meet their energy procurement obligations through solar power.
The Indian government aims to generate 20000 MW of solar power 2022. Due to the rapidly increasing energy demand and the increasing reliance on imported source fossil fuel, India aims to utilize their potential in solar power in an effective matter. The agreement helps both:
1) to benefit Gujarat
2) to develop the ppp solar park model under the Jawaharlal Nehru National Solar Mission (JNNSM)