Guwahati: Asian Development Bank (ADB) will be providing $550 million loan to Assam and Tripura in road and power sectors.
While $300 million has been sanctioned for the road sector in Assam, the bank will provide $200 million for the power sector in Tripura.
The ADB on Tuesday signed loan agreements with Government of India for Assam and Tripura.
The $220 million loan to Tripura will help improve energy security, quality of supply, efficiency, and resilience of power sector in Tripura, while the road loan to Assam will help upgrade over 300 kilometres of state highways and major district roads (MDRs) in Assam.
After signing the loan agreement, Rajat Kumar Mishra, Additional Secretary, Department of Economic Affairs in the Ministry of Finance stated that the project will support the Government of Tripura’s efforts to strengthen its power sector through replacement of inefficient power plants, strengthen the distribution network and installation of smart meters that will help increase generation capacity, reduce distribution losses and to meet the increasing electricity demand to boost the state economy.
“The Project will fund the replacement of Rokhia power plant with a highly efficient combined cycle gas turbine that will reduce greenhouse gas emissions through fuel saving, modernize the state’s power distribution network and build institutional capacity and overall business process of the project executing agencies,” said Mr. Jeong.
It will also promote gender equality through pilot testing of gender and socially inclusive workplace practices. The project will support at least 15 selected women self-help groups (SHGs) under Tripura rural livelihood mission targeting socio-economic empowerment of the rural poor and women of the state that will include farming and non-farming sector.
A reliable electricity supply will lead to social and economic benefits and improved conditions for schools, hospitals, and other social services.
The project components will be designed to withstand heavy rainfall, lightning, and storms with high wind speeds to help the region remain resilient to potential climate change risks. Distribution underground cabling will be installed by the horizontal directional drilling method or tunneling method to minimize road openings and reduce socio-environmental impacts during project implementation.
In the case of Assam, Mishra stated that the project supports the Government of Assam’s flagship Asom Mala road improvement program to enhance the quality and service of priority sections of state highway and MDR networks and fill critical infrastructure gaps.
“Improved connectivity and safe road networks developed through the project will enhance mobility and accessibility of people in the less developed areas of the state to markets and services to spur growth and contribute to its potential as a growth catalyst for the SASEC region,” said Mr Mitash.
The roads to be upgraded under the project, including six road sections in the state’s western, central and southern regions, are connected to SASEC corridors linking India with Bhutan and Bangladesh, and are expected to boost cross-border trade and transport. The project will complement the multimodal logistics park being built in Jogighopa and a another proposed in Silchar to serve road, rail, inland waterway, and air transport facilities.
The project will expand state highways and major district roads from single lane to two lanes and introduce new climate- and disaster-resilient structures. It will establish pedestrian and public transport facilities, elevate highways in flood-prone areas, and include landslide prevention structures in hilly and mountainous areas.
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Community schools, water, health, and sanitation facilities, and heritage and tourism sites will be restored in affected indigenous peoples’ villages. To protect wildlife and habitats in project areas, viaduct structures will be constructed to avoid human–elephant conflict in the elephant habitats. In addition, community road users, drivers, motorcycle riders, schoolteachers, and students will be informed and trained on road safety.
The project will strengthen the capacity of the Assam Public Works (Roads) Department in managing road assets, integrating climate and disaster resilience in road projects, and ensuring safeguards—such as environment, resettlement, and indigenous peoples concerns—are considered.
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