- The agreement was signed by Baldeo Purushartha, Joint Secretary, Department of Economic Affairs, Ministry of Finance on behalf of GoI and Rajat Misra, Acting Director General, Investment Operations on behalf of the AIIB.
Terms of Agreement:
Total estimated cost of Project- $365mn
AIIB Funding (Loan)- $304mn
Assam Funding- $61mn
Loan Maturity- 24 years
Grace Period- 5 years
How will Assam’s electricity transmission be strengthened under this agreement?
–By constructing 10 transmission substations and laying transmission lines with the associated infrastructure.
–By upgrading 15 existing substations, transmission lines and existing ground wire to optical power ground wire.
–By providing technical assistance to support project implementation.
Need for this Project:
There is power deficit scenario in Assam due to congestion of the electricity distribution and transmission networks. Assam Electricity Grid Corporation Limited (AEGCL) is the sole transmission utility in Assam is responsible for the operation, maintenance and development of the transmission system in the State.
- It currently operates 66 substations with 6,882 megavolt-ampere capacity comprising 5,701 circuit kilometers of transmission lines.
Recent Related News:
i.Cabinet Committee on Economic Affairs (CCEA) chaired by PM Narendra Modi approved the revised cost estimate of the North Eastern Region Power System Improvement Project (NERPSIP) for six states at an estimated cost of Rs 6,700 crore. The 6 states are Assam, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura.
ii.On 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.
About Assam:
Tiger Reserve– Manas Tiger Reserve, Nameri Tiger Reserve, Kaziranga Tiger Reserve
Ramsar site– Deepor Beel
About Asian Infrastructure Investment Bank (AIIB)
India, which was among the AIIB’s 57 founding members in 2016. It is also the second-largest shareholder (with 7.62% voting shares) after China (26.06%) and the largest recipient of AIIB’s funds.
Established in – 2016
Headquarters – Beijing, China
Member Countries– 103
President – Jin Liqun (China)
