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Centre, ADB ink pacts worth $100.2 mn

By Staff Reporter

GUWAHATI, Feb 25 � The Government of India (GoI) and the Asian Development Bank (ADB) have signed two agreements worth US $100.2 million for improvement of the power sector of Assam.

According to a press release issued by the Assam Power Distribution Company Ltd (APDCL), the two agreements were signed on February 20.

The first agreement worth US $50.2 million is meant for improvement of the power distribution network of the State, while the second one worth US $50 million is meant for improvement of the power generation sector of the State. Both the loans will be made available as 90 per cent grant to the State, said the press release.

The first loan of US $50.2 million is approved as supplementary tranche of ongoing Multi Tranche Financing Facility (MFF-0038IND) of US $200 million resulting from loan saving from the ongoing tranches. The amount will be utilised for further strengthening of the distribution sector with construction of new 33/11KV sub-stations with associated 33KV, 11KV lines, augmentation and renovation and modernisation of 33KV sub-stations, procurement of mobile testing and maintenance vehicle, installation of automatic metering system, etc.

The next loan of US $ 50 million is the first tranche of ADB�s 2nd MFF (MFF-0083IND) of ADB assistance of US $ 300 million. The amount will be utilised for improvement /modernisation of Lakwa Power Plant by replacing existing old gas turbines by more efficient gas engines.

The loan agreements were signed by M Terresa Kho, Country Director on behalf of ADB, and Tarun Bajaj, Joint Secretary (MI) DEA on behalf of GoI. The project agreement, which is an integral part of the loan agreement, was signed by M Terresa Kho, on behalf of ADB, V B Pyarelal, Additional Chief Secretary (Power) for Government of Assam, and K V Eapen, Chairman, APDCL and Assam Power Generation Corporation Ltd (APGCL), said the press release.

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