AIIB to provide $304 million for Assam Power Transmission Project
The Finance Ministry has announced that, the Central government has signed a loan agreement with the Asian Infrastructure Investment Bank (AIIB) for the Assam Power Transmission Project.
- The loan agreement was signed worth $304 million.
- This loan will be used for strengthening electricity transmission system in the state of Assam.
- The agreement for the AIIB Loan was signed by acting director-general of investment operations at AIIB, Rajat Mishra and the Joint Secretary at the Economic Affairs Department, Baldeo Purushartha.
- Total estimated cost of the Power Transmission project in Assam is $365 million.
- Out of this, $304 million will be provided by AIIB.
- Rest of the amount will be provided by the state government of Assam.
- This loan from AIIB has a maturity period of 24 years and a grace period of 5 years.
- This loan amount from the AIIB will be used to improve the existing power transmission network in Assam.
About Assam Power Transmission Project
- This power transmission project will build new networks in the state that will ensure the affordable and reliable power supply in state.
- The project will also address the substantial energy deficit that the state of Assam face because of congestion in transmission networks and electricity distribution.
- The project comprises of the laying down of a transmission line and construction of 10 transmission substations.
- Further, 15 existing substations will also be upgraded under the project while,
- Some of the existing transmission lines will be converted into the optical power wire.
- This project will help in reducing greenhouse emissions.
- It will also improve the quality of power supply to the consumers.
- The project also seeks to strengthen existing intra-state transmission network in the state by connecting it with new networks which will help in achieving the affordable, reliable, secure and efficient power.
Category: States Current Affairs