Guwahati, September 13, 2014: With new hydro-power projects coming up in Bhutan, Assam is all set to procure electricity from the neighbouring country from 2019, chairman of three state-run power companies K V Eapen said here on Friday.

"The Power Trading Corporation of India has approached us to buy power from Bhutan. We have agreed to the proposal. In the next five years, we would be able to purchase power from Bhutan. Once this happens, it will be the state's first venture into sourcing electricity from the neighbouring country," Eapen, chairman of the Assam Power Distribution Company (APDC), Assam Power Generation Corporation (APGC) and Assam Electricity Grid Corporation (AEGC), said.

Asian Development Bank (ADB)'s lead energy economist Herath Gunatilake, who was here on Friday, said there is a possibility of an integrated power grid structure involving the South Asian countries coming into existence in the near future. The ADB has been assisting power sector reform in the state through its multi-tranche financing facility. In 2013, the bank had provided $250 million under the Assam Power Sector Development Programme (APSDP) for power sector reform, while in 2009, the bank had extended $200 million for improving transmission and distribution capacities in the state. In July this year, the bank approved another $300 million for improving power generation capacity in the state.

Gunatilake said that under the APSDP initiative, transmission and distribution losses in the state were brought down to 29.6% in 2009 from 42.5% in 2003. He added that the big challenge now is to narrow the demand-supply gap which is at present 23%, increase in generation and institutional capacities.

Source: Morung Express

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