India, ADB sign $231 mn loan to set up 120 MW hydroelectric power plant in Assam

The 120 megawatt (MW) hydroelectric power plant will enhance the availability of electricity for households. 

Hydroelectric power plant in Assam
Hydroelectric power plant in Assam

India signed a $231 million loan agreement with the Asian Development Bank (ADB) on December 30, 2020 to construct a 120 megawatt (MW) hydroelectric power plant in Assam to boost electricity generation capacity in the state. The information was shared by the Union Ministry of Finance on January 1, 2021. 

The loan agreement was signed by Additional Secretary, Department of Economic Affairs CS Mohapatra on behalf of India and Officer-in-Charge of ADB’s India Resident Mission Hoe Yun Jeong on behalf of the ADB. 

Additional Secretary Mohapatra said after the signing of the loan agreement that the project will add to Assam’s power generation capacity from clean hydroelectric sources and improve electricity availability.

ADB’s Hoe Yun Jeong stated that the increased supply of affordable and clean electricity facilitated through the project will help improve the living conditions in the state along with promoting business expansion and increase employment opportunities besides reducing greenhouse gas emissions.


The 120 megawatt (MW) hydroelectric power plant will enhance the availability of electricity for households. This is the third tranche loan for the ongoing Assam Power Sector Investment Programme, which was given a go-ahead by the ADB Board in July 2014.

Hydroelectric Power Plant Project

•The proposed hydroelectric project will be built over the Kopili river. It will help boost the supply of clean electricity by 469 gigawatt-hours (GWh) by 2025 and reduce greenhouse gas emissions by 360,000 tons of carbon dioxide annually.

•A portion of the loan will be used for enhancing project capacity of the Assam Power Generation Corporation Limited (APGCL). It will be used for construction, operations, maintenance and safeguards.

•The project will finance the enterprise resource planning system of the APGCL.

•It will also contribute to improving gender equity by enhancing the gender capacity of APGCL and contribute to improving women’s participation and contribution in training and community-led interventions.

•The project also received a $2 million grant from Japan Fund for Poverty Reduction (JFPR) to finance consulting services and equipment to help improve the capacity for resource management and community resilience.

Assam Power Sector Investment Programme

Assam Power Sector Investment Programme was initiated to focus on enhancing the capacity and efficiency of the energy generation and distribution systems in Assam to improve electricity service to end-users. The ADB Board had approved two tranches in the previous years. 


The Asian Development Bank was established in 1966. The bank is committed to achieving a prosperous, resilient, sustainable inclusive Asia and Pacific region while working to eradicate extreme poverty.

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