Millions of energy efficient lights are to be installed in streets and homes across India.

The Asian Development Bank (ADB) and the Government of India have signed a $200 million (£160m) loan to finance the installation of LEDs as well as energy efficient water pumps.

The project is expected to lead to energy savings of around 3,800GWh every year.

The government states it has already launched several initiatives to boost energy efficiency in the energy intensive industry and aims to unlock the market for projects estimated at more than $1 billion (£0.8bn).

L.B. Sondjaja, Deputy Country Director of ADB’s India Resident Mission said: “The installation of energy efficient equipment will give significant energy savings, expected to be 30% from agricultural water pumps, about 80% from households and institutions’ LED lighting and about 50% from LED streetlights.”

India recently joined the International Energy Agency (IEA) as an association country.