The loans are part of Tranche 2 of a multi-tranche financing facility whose target outcome is the achievement of a cleaner electricity mix with more efficient and effective generation and transmission system in Rajasthan. Funding under Tranche 2 is comprised of two loans with $238 million (i.e., Loan 3482) from ADB’s Ordinary Capital Resources and $110 million (i.e., Loan 8312) from the Clean Technology Fund (an external fund administered by ADB). Tranche 2 was approved by ADB on 5 December 2016. The loans have not been signed yet and are not yet effective. Tranche 2 will finance investments in (i) construction of 210 km of 765kV transmission line, 264 km of 400kV transmission line, 240 km of 220kV double circuit transmission line, 132 km of 132kV transmission line, and Optical Ground Wires (OPGW) to connect existing substations; and (ii) construction of eight substations, augmentation of transformers at two substations, and bay extensions at five substations. CO2 reduction of 8,578,704 tons per annum is an indirect benefit of this project, which will be achieved by transmitting renewable energy to be generated from Western Rajasthan.