Centre To Borrow Over Rs 2,200 Crore From Asian Infrastructure Investment Bank For Assam Projects

"Loan from AIIB has a 5-year grace period and a maturity of 24 years," release said. (Representational)

The Centre on Tuesday signed an agreement with Asian Infrastructure Investment Bank (AIIB) for borrowing $304 million (over Rs 2,200 crore) to improve power transmission network in Assam.

According to an official release here, the fund will be utilised for the ''Assam Intra-State Transmission System Enhancement Project'', aiming to improve reliability, capacity and security of the power transmission network in the state.

The total estimated cost of the project is $365 million, of which $304 million will be financed by the AIIB and rest by the state government, it said.

"The loan from the AIIB has a five-year grace period and a maturity of 24 years," the release said.

The project aims to strengthen Assam's electricity transmission system by constructing 10 transmission substations, laying transmission lines, upgrading 15 existing substations, transmission lines and the existing ground wire to optical power ground wire.