ADB’s $50 mn loan to boost power generation capacity in Assam
The Dollar Business Bureau The Narendra Modi Government’s efforts to develop North-East region in terms of connectivity and trade got a major boost with the The Asian Development Bank (ADB) and the Government of India signing a $50 million loan agreement on Friday, for the second Assam Power Sector Investment Program which aims to build up the capacity of power generation and distribution systems to meet the growing energy demand in the state of Assam. So far ADB has supported Assam’s power sector since 2003 with five loans totalling $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. The first tranche loan of the $300 million multi-tranche financing facility will fund generation capacity enhancement and distribution efficiency improvement sub-projects in the State. The new project will finance investments to augment and improve generation capacity through the replacement of an inefficient generating plant and construction of new hydropower plant. Shri Tarun Bajaj, Joint Secretary (Multilateral Institutions), Department of Economic Affairs, Ministry of Finance, signed the agreement on behalf of Government of India and Ms. Teresa Kho, Country Director of ADB’s India Resident Mission, signed the loan agreement for ADB. The project agreements were signed by Sh. V. B. Pyarelal, Additional Chief Secretary (Power) on behalf of the Government of Assam and Shri K. V. Eapen, Chairman, Assam Power Generation Company Limited (APGCL).
This article was published on February 21, 2015.