The ADB’s aid will be used for building of a 657 circuit km of new transmission lines, construction of new 845 km distribution lines, augmentation of 18 existing sub-stations and 27 new sub-stations.

New high voltage distribution systems will be established and existing substations will be renovated in order to minimize distribution and transmission losses.

The ADB is reducing the resettlement alternatives by choosing either barren land or government plots for the substation sites.

Chairman of Assam State Electricity Board, AK Sachan, said “With the 750MW Bongaigaon thermal power station coming up in 2011, there is an urgent need to strengthen the transmission and distribution system so as to be able to take the power to the people.”

Assam’s administration has created a transmission and distribution sector road map that will attempt to provide economical and reliable electricity and enhance power access via off-grid renewable energy-based electricity and grid electricity.

Sources said “With massive improvements in the power sector being lined up, the power sector will require more help.”

A 750 megawatts (MW) thermal power station is being built by the National Thermal Power Corporation at Salakati in Kokrajhar district.

If restrictions on distribution and transmission are eliminated, Assam’s peak power demand could increase to over 1,000 MW from the current 800 MW.

The Assam State Electricity Board intends to augment its own installed capacity of 320 MW through overhaul of existing power plants and new constructions.