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

The LKHEP plant will double the hydropower generation capacity of the Assam Power Generation Corporation.

The loan is the third and largest tranche of the $300 million Assam Power Sector Investment Programme approved by ADB in 2014.

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The LKHEP plant will harness water from the Kopili River to generate a total capacity of 120MW of electricity, particularly during peak demand periods.

The loan will also finance Assam Power Generation Corporation’s enterprise resource planning system and support the implementation of measures to improve financial management.

The energy generator will make use of the loan to implement special measures to mitigate acidity concerns in the Kopili river.

In addition to the loan, a $2 million project grant from ADB’s Japan Fund for Poverty Reduction will finance community-based disaster resilience initiatives and resource management. 

ADB principal energy specialist Len George, said: “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.

“Providing reliable power supply will promote economic growth, create employment opportunities, and attract investments.”