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ADB, GoI sign USD 231 Million Loan Agreement to enhance Power Generation Capacity in Assam 

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power generation capacity in AssamOn December 30, 2020, Asian Development Bank (ADB) & Government of India (GoI) signed a USD 231 Million (~ INR 1688.5 Crores) Loan Agreement for the Assam Power Sector  Investment Program (APSIP) for the construction of Lower Kopili Hydroelectric Power (LKHEP) plant. This is the  3rd Tranche Loan for the program which was approved  by ADB board in July, 2014.

i.The main purpose of the Loan agreement is for increasing the Electricity Generation Capacity in the State of Assam through  construction of a 120 Megawatts (MW) hydroelectric power plant over Kopili River.

ii.A USD  2 Million grant from Japan Fund for Poverty Reduction (JFPR) is also associated with the project to finance equipment  &  consulting  services.

iii.The signatories to the  Loan Agreement were Dr C. S. Mohapatra, Additional Secretary in Ministry  of Finance  who signed for India & Hoe Yun Jeong, Officer-in-charge of ADB’s India Resident Mission, who signed on behalf of ADB.

Key Points:

i.The hydroelectricity project will increase availability of electricity for households.

ii.The project will increase electricity supplied from Clean Energy by 469  Gigawatt-hour  (GWh) by 2025 & reduce Greenhouse Gas emission by 3.6 Lakh Tonnes of Carbon Dioxide annually.

Other purposes of the Loan:

i.For project capacity building of Assam Power Generation Corporation  Limited (APGCL) on construction, operations & maintenance and safeguards.

ii.To Finance APGCL’s enterprise resource planning system.

iii.To improve Gender equity & enhance gender capacity of APGCL.

iv.It will improve women’s participation & contribution in training & community-led interventions.

Assam Power Sector  Investment Program (APSIP):

i.APSIP is supported by ADB, it aims to increase the generation capacity in Assam to 1, 410 MWreduce  distribution losses to 15% by 2022.

ii.In July 2014, ADB agreed to provide an Loan amount of USD 300 Million for the APSIP through Multitranche Financing Facility (MFF).

ADB & GoI sign USD 10 Million for PRF in  Himachal Pradesh:

i.ADB & GoI signed USD 10 Million Project Readiness Financing (PRF) to help finance piloting  activities, project for expanding horticulture  production & farm household income in Himachal Pradesh.

ii.The project will support development of subtropical horticulture, cultivation of fruits & vegetables in the southern region of Himachal Pradesh.

iii.The project is lagging due to lack of access to perennial water sources, crops losses due to wild animal encroachment & limited access to high-value markets.

Recent Related News:

i.On November 3, 2020 The Asian Development Bank (ADB) approved a USD 132.8 million loan to Modernize Power Distribution Network in Meghalaya.

About Asian Development Bank (ADB):

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