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% from the current 95%, and reduce the system loss from 35% (6% transmission) in 2008 to 19% (4% transmission) in 2014.

Shri Venu Rajamony, Joint Secretary (MI), Department of Economic Affairs, Ministry of Finance, signed the loan agreement on behalf of the Government of India (GOI). JS (MI) said on the occasion, “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.”

“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 will create a sustainable state power sector to support inclusive economic growth,” said Mr. Naoki Sakai, Senior Energy Specialist in ADB’s South Asia Department.

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 31 May 2013.