NEW DELHI, Jan 17 � As part of the initiative to boost power sector in the State by reducing transmission and distribution losses and upgrading the power work facilities, the Government of India today signed a loan agreement with the Asian Development Bank (ADB) for $89.7 million under the Assam Power Sector Enhancement Programme, Tranche- II. The overall loan facility is in the order of $200 million.
The Joint Secretary (MI), Department of Economic Affairs, Ministry of Finance, signed the loan agreement on behalf of the Government of India (GOI). The Assam State Electricity Board is the executing agency and the Assam Electricity Grid Corporation Limited is the implementing agency for the project. The project is expected to be completed by May 31 2013.
An official spokesman said the tranche would assist in building two 220-132 kV and six 132-33 kV new substations, construct 342 km of transmission lines besides augmenting 11 existing substations.
It is the second ADB project in support of Assam�s Power Sector Development Programme that is planning to build 14 new substations, construct over 600 km of transmission lines, extend and augment two transmission substations, enhance 18 other existing substations, and upgrade approximately 715 km of ground wire to fibre optic cable, the spokesman said.
The project aims to increase the active power carrying capacity of the network from 766 MW to 1,883 MW by 2014, reduce substation transformation capacity loading to 80 per cent from the current 95 per cent, and reduce the system loss from 35 per cent in 2008 to 19 per cent in 2014.
�By helping enhance quality and expanded service delivery of electricity in Assam through improved technical, commercial, and financial performance and capability of the power sector utilities, the project would create a sustainable state power sector to support inclusive economic growth,� said senior Energy Specialist in ADB�s South Asia Department, Naoki Sakai,
�We look forward to implementation of this investment programme, which will strengthen power transmission capacity in the state and improve access to distribution through grid electricity. I am happy to note the two unique features of this project of private sector participation and the additional off-grid renewable component. The franchisee system for distribution and the emphasis on renewable energy within the scope of this project is welcome,� the Joint Secretary said on the occasion.