The government of India in 2004—the year of loan appraisal—set the target of installing an additional 100 gigawatts (GW) of generating capacity to provide access to electricity for all households by 2012. At that time, India was experiencing load shedding and quality problems because of the limited power transmission capacity. In 2012, the government approved the National Transmission Development Plan (NTDP) with required investments amounting to $12.6 billion. The plan aimed to alleviate existing transmission shortages and deploy additional generation capacity.
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