Power Grid Corporation of India, the country's largest power transmission utility, has signed two loan agreements - one with the World Bank for US$ 600 million and another with the Asian Development Bank (ADB) on Monday for US$ 400 million.

According to the company, the World Bank loan will be utilized to fund a basket of Power Grid's transmission projects during XI plan.

While, ADB loan will be utilized to finance part of the fund requirement of the Company's projects, namely (i) ±800kV High Voltage Direct Current (HVDC) lines under "North Eastern - Northern / Western Region Interconnector-I Project" and (ii) 800kV High Voltage Alternating Current (HVAC) Substations under "Upgradation of Transmission Capacity from Uttarakhand Project.”

The US$ 400 million loan is part of ADB's newly introduced loan facility called Multi-tranche Financing Facility (MFF), which is based on time-sliced approach.

The company, which is responsible for developing and operating Regional and National Transmission Grid, has a long association with ADB and has already availed three loans amounting to US$ 925 million for its various transmission projects.

This is the fourth loan to the Company from ADB having a 25 year term.

Shares of the company declined 1%, to trade at Rs 98. The total volume of shares traded was 1,737,345 at the BSE on Monday.