India to Receive ADB Loan for Power Upgrades in Assam

India will receive $89.7million loan from the ADB for the Assam Power Sector Enhancement Programme, Tranche-II.

The tranche will be used to build two 220/132kV and six 132/33kV new substations, 342km of transmission lines, and upgrade 11 existing substations.

The project aims to boost the power transmission capacity of the network from 766MW to 1,883MW by 2014, and reduce substation transformation capacity loading to 80 per cent from the current 95 per cent.

The enhancements will also reduce the transmission losses to 4 per cent in 2014.

Finance ministry's Department of Economic Affairs Joint Secretary (MI) Venu Rajamony said the programme will strengthen power transmission capacity in the region and improve access to distribution through grid electricity.

The loan is the second ADB project for Assam's Power Sector Development Program, which plans to build 14 new substations, 60km of transmission lines, extend and augment two transmission substations, enhance 18 other existing substations and upgrade about 715km of ground wire to fibre optic cable.

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