India and the Asian Infrastructure Investment Bank (AIIB) on Tuesday signed a $304 million loan agreement for the Assam Intra-State Transmission System Enhancement Project to improve reliability, capacity and security of the power transmission .
February 23, 2021
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The central government and the Asian Infrastructure Investment Bank (AIIB) on Tuesday signed a $304-million loan agreement to fund the Assam Intra-State Transmission System Enhancement Project
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The project aims to strengthen the state’s electricity transmission system by constructing 10 transmission substations and laying transmission lines with the associated infrastructure as well as upgrading 15 existing substations, transmission lines, the Ministry of Finance said in a statement. Additionally, the project will involve upgrading existing ground wire to optical power ground wire.
The total estimated cost of the project is $365 million, of which $304 million will be financed by AIIB while the Assam government will provide counterpart funding of $61 million. The loan comes with a 5-year grace period and a maturity of 24 years. One of the main reasons for the power-deficit scenario in Assam is the congestion of the electricity distribution and transmission
The Centre on Tuesday signed an agreement with Asian Infrastructure Investment Bank (AIIB) for borrowing $304 million (over Rs 2,200 crore) to improve power transmission network in Assam. According to an official release here, the fund will be utilised for the Assam Intra-State Transmission System Enhancement Project , aiming to improve reliability, capacity and security of the power transmission network in the state. The total estimated cost of the project is $365 million, of which $304 million will be financed by the AIIB and rest by the state government, it said. The loan from the AIIB has a five-year grace period and a maturity of 24 years, the release said.