India will receive $1 billion (£0.65bn) to improve its electricity grid.
The Asian Development Bank (ADB) will provide the cash to build and upgrade high voltage, transmission lines and substations in the states of Rajasthan and Punjab.
India’s national transmission company, Power Grid Corporation of India Limited is responsible for the works.
The project will include the creation of a high-voltage terminal with a capacity of 10GW to increase energy delivery from the country’s west to the southern region.
India plans to achieve a national renewable energy target of 175GW by 2022.
It also pledged to produce 40% of its electricity generation from “non-fossil fuel” sources.
Hun Kim, Director General of ADB’s South Asia Department said: “The new transmission lines connecting renewable energy-rich areas to the national grid will enhance connectivity between the regions by bringing clean energy to more people, making the overall Indian power system more efficient and improving India’s overall energy security.”