On December 30 2020, the Asian Development Bank (ADB) and the Government of India (GoI) signed a $231 million loan to augment electricity generation capacity in Assam through the construction of a 120 megawatts (MW) hydroelectric power plant. This is the third tranche loan for the ongoing Assam Power Sector Investment Programme that was approved by the ADB Board in July 2014. The programme, including its two previous tranches, focuses on enhancing capacity and efficiency of energy generation and distribution systems in Assam to improve electricity service to end-users.
The project is expected to add to Assam’s power generation capacity from clean hydroelectric source and improve electricity availability. Subsequently, this would lead to improved living conditions, promote business expansion, and increase employment opportunities in the state, besides reducing greenhouse gas emissions. The proposed hydroelectric project over the Kopili river is expected to increase electricity supplied from clean energy by 469 gigawatthour (GWh) by 2025 and reduce carbon dioxide emissions by 360,000 tons annually.
Part of the loan will be used for project capacity building of Assam Power Generation Corporation Limited (APGCL) on construction, operations and maintenance and safeguards. The project will finance APGCL’s enterprise resource planning system. It will also contribute to improving gender equity by enhancing the gender capacity of APGCL and improve women’s participation and contribution in training and community-led interventions.
A $2 million grant from the Japan Fund for Poverty Reduction (JFPR) is also associated with the project to finance equipment and consulting services to improve capacity for resource management and community resilience.
GoI and ADB also signed a $10 million Project Readiness Financing (PRF) to help finance piloting activities, and design and build capacity for an ensuing project that aims to expand horticulture production and farm household income in the hill state of Himachal Pradesh. This loan agreement comes under the ambit of the Himachal Subtropical Horticulture, Irrigation, and Value Addition Readiness Project.
By creating an enabling environment for subtropical horticulture development, i.e., cultivation of fruits and vegetables, in the state, the PRF project aims to ensure implementation-readiness with prior testing of new production technologies and marketing systems in a cost-effective and timely manner to enhance farm profitability.
The pilot activities supported by the PRF include establishment or rehabilitation of 16 irrigation schemes for water extraction, distribution and storage, developing 17 subtropical horticulture plots for ultra-high density production of selected fruits, fencing horticulture plots to protect crops from animal predation, and forming community horticulture production and marketing associations. These pilot activities will then be scaled up to be implemented in seven districts of Himachal Pradesh. The PRF also supports establishment of water user association (WUAs) on completed irrigation schemes and enhancing women’s participation.
The signatories to the agreements were Dr. C. S. Mohapatra, Additional Secretary, Department of Economic Affairs in the Ministry of Finance and Mr. Hoe Yun Jeong, Officer-in-Charge of ADB’s India Resident Mission.