January 1, 2021
The loan will aid the construction of a 120 MW hydroelectric power plant in the region.
This is the third of three tranche loans under the Assam Power Sector Investment Programme, approved by ADB in 2014.
The aim is to improve the efficiency of energy generation and distribution systems in Assam.
The proposed hydroelectric plant will help reduce CO2 emissions by 360,000 tons every year.
The Government of India continues to work closely with the Asian Development Bank (ADB) on enhancing the power generation capacities of multiple states in India, with the two signing a US$231 million loan for the construction of a hydroelectric power plant in Assam. According to an official Ministry of Finance release on January 1, the loan will enable the construction of a 120 MW hydroelectric power plant that will directly support the availability of electricity across households in the northeastern state.
With the objective of improving the capacity and efficiency of energy generation and distribution systems in the state, the Assam Power Sector Investment Programme has now overseen three tranche loans since it was first approved by ADB in 2014. These loans focus on enhancing electricity service to households and end users, with signatory to the loan, Dr. C. S. Mohapatra, Additional Secretary, Department of Economic Affairs in the Ministry of Finance, commenting on the importance of having a clean source of hydroelectric power in the state.
Subsequently, the ADB signatory and officer-in-charge of its India Resident Mission, Mr. Hoe Yun Jeong, explained how an increased supply of affordable and clean electricity will help improve living conditions, promote business expansion, and increase employment opportunities. In addition, the proposed hydroelectric plant will help reduce greenhouse gas emissions such as carbon dioxide by 3,60,000 tonnes every year. The project will also feature a US$2 million grant from the Japan Fund for Poverty Reduction (JFPR), aimed at procuring equipment and consulting services for better resource management.
Supporting the Government of India’s vision of ‘Power for All’, this project aims to ensure sustainable and inclusive power supply in every state across India, contributing to a vital aspect of the country’s growth and development; the reliable and sustainable distribution of electricity and its services across the nation. The Asian Development Bank, established in 1966, has devoted itself to achieving a prosperous, inclusive, resilient, and sustainable Asia-Pacific through such initiatives.