The project will create socio-economic opportunities
The Asian Infrastructure Investment Bank (AIIB) has signed a US$304 million loan agreement with the Indian Government for strengthening Assam Intra-State Transmission System Enhancement Project to improve reliability, capacity and security of the power transmission network in the State of Assam.
The project aims to construct 10 transmission substations and laying transmission lines with the associated infrastructure, upgrading 15 existing substations, transmission lines and existing ground wire to optical power ground wire and providing technical assistance to support project implementation.
The programme would strengthen the existing intrastate transmission network of Assam by augmenting it with newer networks to achieve affordable, secure, efficient and reliable 24×7 power. This would, in turn, bring Assam closer to ensuring long-term sustainability of its electricity supply.
The AIIB will finance US$304 million of the US$365 million project with the Assam Government financing US$61 million. The AIIB loan has a 5-year grace period and a maturity of 24 years.
The AIIB’s investment will improve the reliability, capacity and security of the power transmission network in Assam. The project will also help in reducing greenhouse gas emissions and improve the quality of power supply to the ultimate consumers, said AIIB Vice President D. J. Pandian.
The project is expected to improve the transmission network and reduce transmission losses. The strong backward and forward linkages associated with the project will create socio-economic opportunities for both households and business communities in the State, said Baldeo Purushartha, Joint Secretary, Department of Economic Affairs, after signing the loan agreement on 23 Feb 2021.
The project financing will help achieving the AIIB energy sector mandate and also support the Indian Government in fulfilling the national development priorities, he added.
The agreement was signed by AIIB Acting Director General, Investment Operations, Rajat Misra.
The State of Assam currently witnesses substantial energy and peak demand deficits. One of the main reasons for the power-deficit scenario in Assam is congestion of the electricity distribution and transmission networks.
Assam Electricity Grid Corporation Limited (AEGCL), the sole transmission utility in Assam is responsible for the operation, maintenance and development of the transmission system in the State. AEGCL currently operates 66 substations with 6,882 megavolt-ampere capacity, and its transmission network comprises 5,701-circuit-km of transmission lines. #banking #loan #project #tenders #investment /fiinews.com
