Loan Agreement signed between India and Asian Development Bank to boost power generation capacity in Assam

On 20.02.2015, a $50 million loan agreement was signed between the Government of India and the Asian Development Bank (ADB).  The objective of the agreement is to boost power generation capacity in Assam. The project will finance investments to augment and improve generation capacity through the replacement of an inefficient generating plant and construction of new hydropower plant, in order to solve the problem of daily electricity cuts of 5 to 6 hours which largely affects important businesses such as the tea gardens which are still connected to the grid. Since 2003, ADB has supported Assam’s power sector with five loans totaling $450 million which have helped the State enact key reforms and improve transmission and distribution systems. The new loan will further support Assam to increase capacity and efficiency of power generation to meet growing local and national demand.

 

-Ministry of Finance

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