The Asian Development Bank (ADB) has approved a $231 million loan to construct the 120-MW Lower Kopili Hydroelectric Power (LKHEP) plant in Central Assam, India.

The LKHEP plant, on the Kopili River, will double the hydropower generation capacity of the Assam Power Generation Corporation, ADB said.

This loan is the third and largest tranche of the $300 million Assam Power Sector Investment Program ADB approved in 2014. The project has so far upgraded the 70-MW Lakwa gas project and improved distribution networks in the state.

“This project will produce clean energy and help address the growing demand for electricity in the state of Assam. It will also help state power companies reduce their dependence on expensive electricity from fossil fuel sources,” said ADB Principal Energy Specialist Len George. “Providing reliable power supply will promote economic growth, create employment opportunities, and attract investments.”

The project will also finance APGCL’s enterprise resource planning system and will support implementation of measures to improve financial management. It will also plan for special measures to mitigate acidity concerns in the Kopili River on the project, ADB said.

In addition to the loan, a $2 million project grant from ADB’s Japan Fund for Poverty Reduction will finance community-based disaster resilience initiatives and resource management.

ADB is committed to achieving a prosperous, inclusive, resilient and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members, 49 from the region.