The Asian Development Bank (ADB) has sanctioned a $231m loan for the construction of the Lower Kopili Hydroelectric Power (LKHEP) plant in Central Assam, India.

The LKHEP plant is expected to double the hydropower generation capacity of the Assam Power Generation Corporation (APGCL).

The plant will produce a total capacity of 120MW of electricity to harness water from the Kopili River, to address power requirements during peak demand periods.

The loan provided by the ADB is the third and largest tranche of the $300m Assam Power Sector Investment Program approved by the bank in 2014.

To date, the project has upgraded the 70MW Lakwa gas project and improved distribution networks in the state.

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.”

The project will support implementation of measures to improve financial management and will also finance APGCL’s enterprise resource planning system. The project will look for measures to lessen acidity concerns in the Kopili river.

Recently, ADB has approved $430m multitranche financing facility (MFF) to the Uttar Pradesh Power Distribution Network Rehabilitation Project in India.

The project will fund the conversion of 65,000km of rural low-voltage distribution lines from bare conductors to aerial bundle conductors, which in turn is expected to benefit about 70 million people in 46,000 rural villages.