Assam targets energy independence with Rs 77,353-crore power sector investment

The Assam government on July 10 unveiled its most ambitious power sector roadmap yet, announcing investments worth Rs 77,353 crore across hydro, solar, thermal and energy storage projects with the goal of transforming the state into a power-surplus state and the Green Energy Hub of Northeast India.

Presenting the Assam Budget 2026-27 in the Assembly, Finance Minister Jayanta Malla Baruah said the state is committed to harnessing its vast green energy potential and building a sustainable energy ecosystem.

"Our Government is determined to realise Assam's green energy potential to the fullest. We are committed to transforming Assam into a power-surplus State and the Green Energy Hub of Northeast India," he said.

The minister said the investment pipeline, the largest in the state's history, will be financed through a mix of state resources, Centrally Sponsored Schemes, Externally Aided Projects and Public-Private Partnerships.

The proposed projects include 4,900 MW of Pumped Storage Power (PSP) with an investment of Rs 27,100 crore, 3,200 MW thermal power capacity worth Rs 40,000 crore, 137 MW of small hydropower projects costing Rs 2,617 crore, 75 MW of solar projects worth Rs 456 crore, a 25 MW Battery Energy Storage System estimated at Rs 170 crore, and the 120 MW Lower Kopili Hydroelectric Project with an investment of Rs 2,410 crore.

Baruah announced that the Lower Kopili Hydroelectric Project has entered the trial commissioning stage and is already supplying around 55 MW to the power grid. The project is expected to be fully commissioned later this month.

The government also plans to develop 11 new small hydropower projects with a combined capacity of 137.2 MW, spread across Karbi Anglong, West Karbi Anglong, Udalguri, Dima Hasao, Sivasagar and Biswanath districts.

To strengthen renewable energy integration, the state has approved four Pumped Storage Power projects with a combined capacity of 4,900 MW in Karbi Anglong, West Karbi Anglong and Dima Hasao, attracting an estimated Rs 27,100 crore in private investment.

The Budget also proposes a 50 MW ground-mounted solar power project in Sonitpur and a 25 MW solar plant at Namrup in Dibrugarh, besides a 25 MW/100 MWh Battery Energy Storage System in Kamrup.

In addition, the government highlighted future projects, including a 500 MW NEEPCO Pumped Storage Project in Dima Hasao and a 30 MW integrated Solar and Battery Energy Storage System in Goalpara.

To support the growing power generation capacity, the state will invest Rs 4,600 crore in power evacuation infrastructure, including new 400 kV transmission corridors and grid substations.

Over the next five years, Assam plans to add 15,000 circuit kilometres of transmission and distribution lines, establish 120 new substations, and install 20,000 high-voltage distribution transformers.

The Finance Minister also said the government aims to reduce transmission and distribution losses from the current 13.4 per cent to 8 per cent, improving efficiency and strengthening the state's power network.