India will receive s $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 220/132 kV and six 132/33 kV new substations, 342km of transmission lines (185 km of 220 kV and 157 km of 132 kV 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, reduce substation transformation capacity loading to 80% from the current 95%.

The enhancements will also reduce the system loss from 35% of which transmission losses amount to 6% in 2008 to 19% system loss that will reduce transmission losses to 4% in 2014.

Indian ministry of finance department of economic affairs joint secretary Shri Venu Rajamony said that the program will strengthen power transmission capacity in the state and improve access to distribution through grid electricity.

The loan is the second ADB project for power sector development program in Assam.