Assam Unveils Policy to Boost Thermal Power and Attract Investment

12 May 2025 CW Team

Chief Minister Himanta Biswa Sarma highlighted the growing energy requirements of the state, forecasting a rise to 5,000 MW by 2032, with an annual increase of approximately 1,000 MW. He noted that the new policy would provide companies with free land, water supply, and road infrastructure to facilitate the establishment of thermal power plants. The state government plans to procure power through tenders, and any surplus electricity could be sold to neighbouring states or exported to countries like Bhutan and Nepal. The Chief Minister reportedly described the policy as aggressive and affirmed that the government would buy power through a tendering process.

Under the policy, the government may hold up to 27 percent equity in thermal power projects. Potential project locations identified include Rupsi in Kokrajhar and Sapor in Goalpara. A mega thermal power plant with a capacity of 1,800 MW is estimated to need an investment of Rs 200 billion and about 3,000 bighas of land. The state is also in discussions with the Central Government to obtain coal mines in Jharkhand and West Bengal.

Simultaneously, industrial investments across various sectors are flowing into Assam, driven by Memorandums of Understanding (MoUs) signed during the Advantage Assam 2.0 summit. These include Rs 9.81 billion from Kohinoor Pulp & Paper (P) and Rs 8.27 billion from RPN Specialty Paper (P).

Additionally, several other projects have received approval, such as a Rs 7.50 billion initiative utilizing Numaligarh Refinery byproducts, and facilities for breweries, ethanol and cement production, battery manufacturing, and recycled plastics. The hospitality sector is also seeing expansion, with projects like Taj Gateway in Jagiroad and Marriott in Guwahati gaining clearance.

To support this wave of development, the state government plans to construct a six-lane highway connecting Guwahati to Umiam in Meghalaya, along with other planned expressways along crucial corridors such as Srirampur-Guwahati, Guwahati-Jorhat, and Jorhat-Dibrugarh, all expected to be completed within five years.

News source: Projects Today

The Assam government has sanctioned the Assam Thermal Power Generation Product Promotion Policy 2025, aiming to attract large-scale investments to expand thermal power capacity and transform the state into a regional energy hub. As part of this initiative, the state Cabinet approved investment proposals amounting to Rs 77.30 billion. Chief Minister Himanta Biswa Sarma highlighted the growing energy requirements of the state, forecasting a rise to 5,000 MW by 2032, with an annual increase of approximately 1,000 MW. He noted that the new policy would provide companies with free land, water supply, and road infrastructure to facilitate the establishment of thermal power plants. The state government plans to procure power through tenders, and any surplus electricity could be sold to neighbouring states or exported to countries like Bhutan and Nepal. The Chief Minister reportedly described the policy as aggressive and affirmed that the government would buy power through a tendering process. Under the policy, the government may hold up to 27 percent equity in thermal power projects. Potential project locations identified include Rupsi in Kokrajhar and Sapor in Goalpara. A mega thermal power plant with a capacity of 1,800 MW is estimated to need an investment of Rs 200 billion and about 3,000 bighas of land. The state is also in discussions with the Central Government to obtain coal mines in Jharkhand and West Bengal. Simultaneously, industrial investments across various sectors are flowing into Assam, driven by Memorandums of Understanding (MoUs) signed during the Advantage Assam 2.0 summit. These include Rs 9.81 billion from Kohinoor Pulp & Paper (P) and Rs 8.27 billion from RPN Specialty Paper (P). Additionally, several other projects have received approval, such as a Rs 7.50 billion initiative utilizing Numaligarh Refinery byproducts, and facilities for breweries, ethanol and cement production, battery manufacturing, and recycled plastics. The hospitality sector is also seeing expansion, with projects like Taj Gateway in Jagiroad and Marriott in Guwahati gaining clearance. To support this wave of development, the state government plans to construct a six-lane highway connecting Guwahati to Umiam in Meghalaya, along with other planned expressways along crucial corridors such as Srirampur-Guwahati, Guwahati-Jorhat, and Jorhat-Dibrugarh, all expected to be completed within five years. News source: Projects Today

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