Assam Approves ₹52 Billion Power Distribution Modernization Project

The state will also procure 100 MW of renewable energy from SECI

September 27, 2023


The Assam government has approved a ₹51.97 billion ($624.4 million) project to modernize the state’s power distribution system. The approved project, funded under the revamped distribution sector program (RDSS), seeks to augment the distribution system by March 31, 2026, and is expected to benefit around 6.7 million electricity consumers across Assam.

The program also involves the procurement of 100 MW of renewable energy through a power purchase agreement with a tariff determined by the Solar Energy Corporation of India (SECI).

The procurement of wind-solar hybrid power under the Inter-State Transmission System Tranche-VI Scheme has also received the Assam Cabinet’s approval. This decision is geared towards ensuring a consistent power supply, particularly during peak demand periods.

The state was recently allocated 179 MW of thermal power from the Dadri-I project of NTPC to ensure adequate supply to the industries and households in the state.

In March, the Assam government granted in-principle approval for 620 MW of renewable energy projects, with a focus on agrivoltaic and solar projects, providing employment opportunities and benefiting small producer organizations and farmer families.

During the same time, the state cabinet also approved a proposal to set up a 70 MW solar project at Khudigaon under the Bilaspara Revenue Circle in the Dhubri district. The power would be sold to the Assam Power Distribution Company. The project will be developed on a build, own, and operate model.

Last November, Assam Power Distribution Company invited bids from consultants to prepare a detailed project report for a 1 GW grid-connected solar project in the Karbi Anglong district. The project was to be developed under the ‘Mukhya Mantri Sauro Shakti Prokolpo’ program and funded by the Asian Development Bank.

Assam has made significant progress in open access solar installations, ranking sixth among Indian states in the second quarter of 2022. The state’s policy environment, surcharge exemptions, and favorable banking policy make open access a cost-effective and attractive option for consumers, contributing to the growth of renewable energy in the region.