The Assam cabinet on Friday decided to extend a power purchase subsidy of Rs 1.90 billion to a state-owned utility to avoid a hike in tariff in the financial year 2022-23 and provide relief to consumers.

During the meeting, chaired by Chief Minister Himanta Biswa Sarma, the cabinet gave its nod to the proposal to provide the subsidy to Assam Power Distribution Company (APDCL).

In a bid to boost power generation, it also approved the 24-MW Karbi Langpi Middle II Hydro Project at Rs 3 billion, state Minister Jayanta Malla Baruah told reporters after the meeting.

The project is expected to be completed within 36 months from the date of commencement, and will help Assam Power Generation Corporation (APGCL) meet the growing electricity demand in the state, he said.