Asian Development Bank Approves $231 Million Loan for Hydropower Project in Assam

The Asian Development Bank (ADB) has approved a $231 million loan to develop the Lower Kopili Hydroelectric Power (LKHEP) facility in Assam.

The Lower Kopili Hydroelectric Power facility will utilize water from the Kopili river to produce around 120 MW of electricity, specifically during peak demand periods. The project will double the hydropower generation capacity of Assam Power Generation Corporation Limited (APGCL), ADB said in a press release.

The funding is the third and largest tranche of the $300 million allocated under the Assam Power Sector Investment Program approved by ADB in 2014. It has so far funded the upgradation of the 70 MW Lakwa gas project as well as power distribution networks in Assam.

The program will also provide funding for APGCL’s enterprise resource planning system and support implementing measures to enhance its financial management. Under the plan, steps would be taken to reduce acidity in the Kopili river.


Community-based disaster resilience initiatives and resource management will also be financed through project funding worth $2 million from ADB’s Japan Fund for Poverty Reduction.

“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,” said Len George, Principal Energy Specialist of ADB.

Earlier this month, ADB approved a $190 million (~₹13.9 billion) loan to upgrade the power distribution system in  Bengaluru in Karnataka.

Mercom previously reported that ADB  had approved a $430 million multi-tranche financing facility to improve the reliability and quality of power supply in Uttar Pradesh. The funding would be utilized for the Uttar Pradesh Power Distribution Network Rehabilitation project, which would enhance the sustainability and efficiency of the electricity supply in the state.