Union Ministry of Finance has announced that, the government of India has signed a loan agreement with the Asian Infrastructure Investment Bank for the Assam Power Transmission Project (APTP).
- GoI and AIIB loan agreement was signed worth US$ 304 million.
- US$ 304 million loan will be used for strengthening electricity transmission system in the northeastern state of Assam.
- The agreement for the AIIB Loan was signed by acting director-general of investment operations at Asian Infrastructure Investment Bank, Rajat Mishra and the Joint Secretary at the Economic Affairs Department, Baldeo Purushartha.
- Out of this, US$ 304 million will be provided by Asian Infrastructure Investment Bank.
- Rest of the amount will be provided by the Assam government.
- This loan from AIIB has a maturity period of 24 years and a grace period of five years.
- This loan amount from the Asian Infrastructure Investment Bank will be used to improve the existing power transmission network in Assam.
Assam Power Transmission Project
- The Project will build new networks in the state that will ensure the affordable and reliable power supply in state.
- The Assam Power Transmission Project will also address the substantial energy deficit that the state of Assam face because of congestion in transmission networks and electricity distribution.
- It comprises of the laying down of a transmission line and construction of ten transmission substations.
- Further, 15 existing substations will also be upgraded under the project while,
- Some of the existing transmission lines will be converted into the optical power wire.
- It will help in reducing greenhouse emissions.
- The project will also improve the quality of power supply to the consumers.
- It also seeks to strengthen existing intra-state transmission network in the state by connecting it with new networks which will help in achieving the affordable, reliable, secure and efficient power.
loan Assam Power Transmission Project