OPEN APP
Home >News >India >India inks $304 mn AIIB loan agreement for Assam power transmission projects
File Photo: India is AIIB’s second-largest shareholder and the largest recipient of AIIB’s funds (REUTERS)
File Photo: India is AIIB’s second-largest shareholder and the largest recipient of AIIB’s funds (REUTERS)

India inks $304 mn AIIB loan agreement for Assam power transmission projects

  • The project plans to construct 10 transmission substations, upgrading 15 existing substations, laying transmission lines and building associated infrastructure
  • This comes in the backdrop of the govt working on improving electricity transmission and distribution architecture for northeastern states

New Delhi: India on Tuesday inked a $304 million loan agreement with the Asian Infrastructure Investment Bank (AIIB), for improving the power transmission network in Assam.

The Assam intra-state transmission system enhancement project plans to construct 10 transmission substations, upgrading 15 existing substations, laying transmission lines and building associated infrastructure.

India is AIIB’s second-largest shareholder and the largest recipient of AIIB’s funds.

“The programme would strengthen the existing intrastate transmission network of Assam by augmenting it with newer networks to achieve affordable, secure, efficient and reliable 24×7 power," finance ministry said in a statement on Tuesday.

This comes in the backdrop of the government working on improving electricity transmission and distribution architecture for northeastern states of Assam, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura.

“The total estimated cost of the project is $365 million, of which $304 million will be financed by the AIIB while the counterpart funding from the Government of Assam is $61 million. The $304 million loan from the AIIB has a 5-year grace period and a maturity of 24 years," the statement added.

The development of infrastructure in India's northeast is also key to the nation’s so-called Look East policy, focusing on southeast Asia.

“The State of Assam currently witnesses substantial energy and peak demand deficits. One of the main reasons for the power-deficit scenario in Assam is congestion of the electricity distribution and transmission networks," the statement said.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Click here to read the Mint ePaperMint is now on Telegram. Join Mint channel in your Telegram and stay updated with the latest business news.

Close
×
Edit Profile
My ReadsRedeem a Gift CardLogout