India will receive $89.7m under a loan agreement signed with the Asian Development Bank (ADB) for the Assam Power Sector Enhancement Programme, Tranche-II.
The tranche will be used to build two 220/132kV and six 132/33kV new substations, 342km of transmission lines (185km of 220kV and 157km of 132kV transmission lines), and upgrade 11 existing substations.
The project aims to boost the power transmission capacity of the network from 766MW to 1,883MW by 2014, and reduce substation transformation capacity loading to 80% from the current 95%.
The enhancements will also reduce the transmission losses to 4% in 2014.
Finance ministry's Department of Economic Affairs Joint Secretary (MI) Venu Rajamony said the programme will strengthen power transmission capacity in the region and improve access to distribution through grid electricity.
The loan is the second ADB project for Assam's Power Sector Development Program, which plans to build 14 new substations, 60km of transmission lines, extend and augment two transmission substations, enhance 18 other existing substations and upgrade about 715km of ground wire to fibre optic cable.