The Japan Bank for International Cooperation (JBIC) has signed a framework for collaboration with the United States Agency for International Development (USAid). The framework seeks to create a partnership between the two institutions, to help implement projects and advise project leaders on capacity building, in the Indian electric power sector.
Rapid economic growth in India has led to a severe power shortage. In an urgent attempt to increase the power supply capacity, the government is constructing power generation plants. Other pressing issues to address are; securing stable power distribution to customers, developing new power sources including renewable energy sources and promoting energy conservation.
The framework is expected to enable the two institutions to establish a comprehensive co-operational relationship, both offering knowledge assistance, thereby making overall assistance more efficient. Given that India is one of the largest global energy consumers, this co-ordinated effort to up-grade energy consumption will contribute to worldwide energy security.