India and Asian Development Bank (ADB) have signed a USD 231 million loan to augment electricity generation capacity in the State of Assam through construction of a 120 MegaWatts hydroelectric power plant that will enhance availability of electricity for households.
This is the third tranche loan for the ongoing Assam Power Sector Investment Programme that was approved by the ADB Board in July 2014.
According to an official release, the programme, including its two previous tranches, focuses on enhancing capacity and efficiency of the energy generation and distribution systems in Assam to improve electricity service to end users.
The signatories to the loan agreement were Additional Secretary in the Ministry of Finance Dr. C. S. Mohapatra and Officer-in-Charge of ADB’s India Resident Mission, who signed for ADB Mr. Hoe Yun Jeong.
After signing the loan agreement, Dr Mohapatra stated that the project will add to Assam’s power generation capacity from clean hydroelectric sources and improve electricity availability.
The proposed hydroelectric project is run-of-the-river project over Kopili river which will help increase electricity supplied from clean energy by 469 GigaWatt Hour by 2025 and reduce greenhouse gas emissions by 3,60,000 tonnes of carbon dioxide annually.