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