India, AIIB sign $ 304 million loan agreement to improve power transmission in Assam
New Delhi, February 24 (KNN) In order to improve the reliability, capacity and security of the power transmission network in Assam, the Indian government and the Asian Infrastructure Investment Bank (AIIB) signed a loan agreement for a project on Tuesday. $ 304 million improvement in Assam’s intra-state transportation system.
The project aims to strengthen Assam’s electricity transmission system by building 10 transmission substations and laying transmission lines with associated infrastructure. This project will upgrade 15 existing substations, transmission lines and ground wires to optical power ground wire and provide technical assistance to support project implementation.
The program would strengthen Assam’s existing intra-state transmission network by augmenting it with newer networks to achieve affordable, secure, efficient and reliable 24 Ã 7 power. This, in turn, would bring Assam closer to the long-term sustainability of its electricity supply.
The loan agreement was signed by Baldeo Purushartha, Assistant Secretary, Department of Economic Affairs, Ministry of Finance on behalf of the Government of India, and Rajat Misra, Acting Director General, Investment Operations on behalf of AIIB.
Purushartha said 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 households and business communities in the state.
He said this project funding will help achieve the mandate of AIIB’s energy sector and also help the Indian government to fulfill national development priorities.
Assam State is currently experiencing significant energy deficits and peak demand. One of the main reasons for the energy deficit scenario in Assam is the congestion of the electricity distribution and transmission networks.
Assam Electricity Grid Corporation Limited (AEGCL), Assam’s sole public transportation utility is responsible for the operation, maintenance and development of the state’s transportation system. AEGCL currently operates 66 substations with a capacity of 6,882 megavolts-amps and its transmission network includes 5,701 kilometers of transmission line circuits. The project would improve the constraints and congestion of the state’s transport network.
AIIB Vice President DJ Pandian said AIIB’s investment will improve the reliability, capacity and security of the power transmission network in Assam. The project will also help reduce greenhouse gas emissions and improve the quality of the electricity supply to end consumers.
The total estimated cost of the project is $ 365 million, of which $ 304 million will be funded by the AIIB while the matching funding from the Government of Assam is $ 61 million. AIIB’s $ 304 million loan has a 5-year grace period and a 24-year term.