India, AIIB sign loan agreement for Assam power transmission upgrade project
- February 24, 2021
India and Asian Infrastructure Investment Bank (AIIB) have signed a $304-million loan agreement for the “Assam Intra-State Transmission System Enhancement Project”.
The project aims to strengthen Assam’s electricity transmission system by constructing ten transmission substations and laying transmission lines with the associated infrastructure. The project will also upgrade 15 existing substations, and transmission lines and existing ground wire to optical power ground wire and provide technical assistance to support project implementation.
This project aims to bring Assam closer to ensuring long-term sustainability of its electricity supply.
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.
Power deficit
Assam currently witnesses substantial energy and peak demand deficits. One of the main reasons for its power-deficit scenario is congestion of the electricity distribution and transmission networks. Assam Electricity Grid Corporation Ltd (AEGCL), the sole transmission utility in the state, is responsible for the operation, maintenance and development of the transmission system in the State. AEGCL currently operates 66 substations with 6,882 MVA capacity and its transmission network comprises 5,701 ckm of transmission lines. The project would improve the transmission network constraints and congestion in the state.
Project Outlay
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 state government is $61 million. The $304 million loan from the AIIB has a 5-year grace period and a maturity of 24 years.
Project Details
The overall project has three components:
- Construction of about 10 new high voltage grid substations (400kV, 220kV and 132kV) along with the associated transmission lines.
- Upgradation of a) about 15 existing substations, b) upgradation of transmission lines to High Tension Low Sag, and c) replacement of existing ground wire by OPGW.
- Technical assistance, including (i) supporting the purchase, installation and operation of an enterprise resource planning system; (ii) engaging a Project Management Consultant to help support implementation of the project; and (iii) organizing training and workshops on project implementation.
