A view of Guwahati city
New Delhi: The Asian Development Bank (ADB) and the Government on December 30, 2020 signed a $231 million loan to augment electricity generation capacity in Assam through construction of a 120 megawatts (MW) hydroelectric power plant that will enhance availability of electricity for households, a Ministry of Finance press release stated today. The Ministry of Finance further informed that on the same day, the ADB and the Government signed another $10 million project readiness financing (PRF) to help finance piloting activities, and design and capacity building for an ensuing project that aims to expand horticulture production and farm household income in Himachal Pradesh.
Also read: $300 million ADB loan to upgrade power distribution network in Uttar Pradesh
This is the third tranche loan for the ongoing Assam Power Sector Investment Programme that was approved by the ADB Board in July 2014. The programme, including its two previous tranches, focuses on enhancing capacity and efficiency of the energy generation and distribution systems in Assam to improve electricity service to end users.
The proposed hydroelectric project is run-of-the-river project over Kopili river which will help increase electricity supplied from clean energy by 469 gigawatthour (GWh) by 2025 and reduce greenhouse gas emissions by 360,000 tons of carbon dioxide annually. Part of the loan will be used for project capacity building of Assam Power Generation Corporation Limited (APGCL) on construction, operations and maintenance and safeguards. The project will finance APGCL’s enterprise resource planning system. It will also contribute to improving gender equity by enhancing the gender capacity of APGCL and improve women’s participation and contribution in training and community led interventions.
A $2 million grant from Japan fund for poverty reduction (JFPR) is also associated with the project to finance equipment and consulting services to improve capacity for resource management and community resilience.
In Himachal, the ensuing project, to be designed by the PRF, will support development of subtropical horticulture, including cultivation of fruits and vegetables, in the state’s southern region which is currently lagging due to limited access to perennial water sources, crops losses due to wild animal encroachment and limited access to high value markets.
The pilot activities supported by the PRF project include establishment or rehabilitation of 16 irrigation schemes for water extraction, distribution and storage; developing 17 subtropical horticulture plots for ultra-high density production of selected fruits; fencing horticulture plots to protect crops from animal predation; and forming community horticulture production and marketing associations to build their capacities for business and marketing.
These pilot activities will then be scaled up under the ensuing project to be implemented in 7 districts of Himachal Pradesh. The PRF also supports establishment of water user association (WUAs) on completed irrigation schemes and enhancing women’s participation.
– global bihari bureau
