ADB Approves $231 Million Loan to Construct Lower Kopili Hydroelectric Power Plant in  Central Assam, India

Asian Development Bank (ADB) has approved a $231 million loanOn December 19, 2020 The Asian Development Bank (ADB) approved a $231 million(Around Rs 1,705 crore) loan to construct the Lower Kopili Hydroelectric Power (LKHEP) plant in Central Assam, India. This loan is the 3rd and largest tranche of the $300 million(about Rs 2,200 crore) Assam Power Sector Investment Program that was approved by ADB in 2014.

Purpose of the Loan– To help enhance the clean energy supply in India.

Points to be Noted

i.The loan is enhanced by a $2 million project grant from Japan Fund for Poverty Reduction(JFPR) of ADB.

ii.This will finance the community-based disaster recovery efforts and resource management.

Benefits of LKHEP plant:

  • The hydropower generation capacity of the Assam Power Generation Corporation Ltd(APGCL) will be doubled by the LKHEP plant.
  • The plant utilises water from Kopili River so as to generate a total capacity of 120 MW of electricity, especially during peak demand periods.

About Assam Power Sector Investment Program

i.ADB approved a $300 Million Loan to Continue Power Upgrades in Assam on July 3, 2014.

ii.The multi tranche loan facility is a part of a broader 10-year, $3.5 billion state investment program.

iii.The funds were planned to disbursed in 3 tranches:

1st installment- $50 million; 2nd installment-  $50 million; 3rd installment- $200 million.

About the Project

i.This project will generate clean energy  and help to address the increasing electricity demand in Assam.

ii.It will help the state power companies to minimize their dependence on expensive electricity from fossil fuel sources.

iii.It will finance the enterprise resource planning system of APGCL and help to implement measures to improve financial management.

iv.It will also plan to mitigate the acidity concerns in the Kopili river through special measures

Recent Related News:

On September 8, 2020, Government of India (GoI) and Asian Development Bank (ADB) signed a $500 million loan agreement for the Delhi-Meerut RRTS (regional rapid transit system) Investment Project. This is the first tranche of a total $1billion (about Rs 7,485 crore) facility.

About Asian Development Bank (ADB):

Headquarters– Mandaluyong, Manila, Philippines
President– Masatsugu Asakawa
Membership– 68 countries(Including India)
Formed– 1966





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