India, ADB sign USD 231 million loan MoU to enhance power generation capacity in Assam

India, ADB sign USD 231 million loan MoU to enhance power generation capacity in Assam

The Asian Development Bank (ADB) and the Government of India signed a $ 231 million loan to augment electricity generation capacity in the state of Assam through construction of a 120 megawatts (MW) hydroelectric power plant that will enhance availability of electricity for households.

Also Read: India, World Bank Signs USD 500 Million Project to Develop Green, Resilient and Safe Highways in India: Highlights with Details

This is the third tranche loan for the ongoing Assam Power Sector Investment Programme that was approved by the ADB Board in July 2014. 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 MoU Signed by - India, ADB sign USD 231 million loan MoU to enhance power generation capacity in Assam

The signatories to the loan agreement were Dr. C. S. Mohapatra, Additional Secretary, Department of Economic Affairs in the Ministry of Finance who signed for the Government of India, and Mr. Hoe Yun Jeong, Officer-in-Charge of ADB’s India Resident Mission, who signed for ADB.

The project will add to Assam’s power generation capacity from clean hydroelectric source 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 (GWh) by 2025 and reduce greenhouse gas emissions by 360,000 tons of carbon dioxide annually. Part of the loan will be used for project capacity building of Assam Power Generation Corporation Limited (APGCL) on construction, operations and maintenance and safeguards. The project will finance APGCL’s enterprise resource planning system. It will also contribute to improving gender equity by enhancing the gender capacity of APGCL and improve women’s participation and contribution in training and community led interventions.