The Asian Development Bank (ADB) has approved a US$231 million loan for the construction of the Lower Kopili Hydroelectric Power (LKHEP) plant in Central Assam, India.

This loan is the third and largest tranche of the US$300 million Assam Power Sector Investment Programme approved by ADB in 2014. The project has so far upgraded the 70MW Lakwa gas project and improved distribution networks in the state.

The LKHEP plant will double the hydropower generation capacity of the Assam Power Generation Corporation Ltd (APGCL). It will harness water from the Kopili River to generate a total capacity of 120MW of electricity, particularly during peak demand periods.

“This project will produce clean energy and help address the growing demand for electricity in the state of Assam. It will also help state power companies reduce their dependence on expensive electricity from fossil fuel sources,” says ADB principal energy specialist Len George. “Providing reliable power supply will promote economic growth, create employment opportunities, and attract investments.”

The project will also finance APGCL’s enterprise resource planning system and support the implementation of measures to improve financial management. It will also plan for special measures to mitigate acidity concerns in the Kopili River in relation with the hydroelectric project. In addition to the loan, a US$2 million project grant from ADB’s Japan Fund for Poverty Reduction will finance community-based disaster resilience initiatives and resource management.