Assam cabinet approves thermal power policy, aims for ₹7,730 crore investments

Assam's cabinet has approved the Assam Thermal Power Generation Product Promotion Policy 2025, aiming to attract significant investments into the thermal power sector.

Offering land and an offer to pick up stake Assam cabinet has approved the Assam Thermal Power Generation Product Promotion Policy 2025 aimed at drawing large-scale investments into the sector. The cabinet has approved investment proposals worth ₹7,730 crore.

Assam is eyeing to become the regional hub of thermal power. Assam chief minister Himanta Biswa Sarma said that Assam’s power requirement is rapidly increasing and expected to reach 5,000 MW by 2032, increasing at a rate of 1,000 MW per year.

He added, “we are rolling out an aggressive thermal power policy. The state government will offer land free of cost, along with water and road infrastructure, to companies willing to set up thermal power plants. We will purchase power from them by floating tender. After meeting the state’s requirement, the power can be sold to neighbouring states such as West Bengal or exported to countries like Bhutan and Nepal".The chief minister said the policy allows for government equity participation of up to 27% in power projects. The state has identified sites for these plants, including Rupsi in Kokrajhar and Sapor in Goalpara, among others. “We’ve identified six to seven locations. A mega thermal plant needs around 3,000 bighas of land. To generate 1,800 MW, an investment of roughly ₹20,000 crore will be required."Sarma said. “We are in talks with the Centre for getting coal mines in Jharkhand and West Bengal.”The Chief Minister revealed that ₹750 crore investment would come from investors who will use products from Numaligarh Refinery to produce a range of products. “These are the outcomes of the memorandum of understanding (MoUs) signed during the Advantage Assam 2.0 summit. Kohinoor Pulp & Paper (P) Limited and RPN Specialty Paper (P) Limited will invest ₹981 Crore and ₹827 Crore respectively. The cabinet has cleared the battery manufacturing unit for television and recycled plastic bottle units.”He said, “A company will set up a brewery, Cabinet has cleared a project for ethanol manufacturing. Several companies are setting up cement manufacturing units. Tata will come with Taj Gateway hotel in Jagiroad, a company is coming up with a Marriott hotel in Guwahati.”The Chief Minister said there are plans for a six-lane road connecting Guwahati to Umiam in Meghalaya. “This new road will not be part of the Guwahati-Panchgram controlled-access highway but will fall under a separate project that is currently in the pipeline. The state is also exploring similar “point-to-point” controlled-access highways on key corridors — Srirampur to Guwahati, Guwahati to Jorhat, and Jorhat to Dibrugarh — all of which are expected to be coming up within five years”.