Assam Cabinet Approves the Assam Thermal Power Generation Promotion Policy 2025
According to reports, the Assam Cabinet has approved the Assam Thermal Power Generation Promotion Policy 2025, setting the stage for the state to become a thermal power hub with a target of generating 5,000 MW by 2035. Under the new policy, Assam plans to add 2,000 MW of thermal power capacity by 2030 and scale up to 5,000 MW by 2035. The Assam Power Distribution Company Limited (APDCL) has been designated as the nodal agency for implementing the policy, which includes a dedicated single-window clearance system.
Chief Minister Himanta Biswa Sarma says, “The policy aims to ensure energy self-sufficiency and boost private sector participation in the power sector.”
“2030 Assam will require 3,000 MW of electricity, and the demand is expected to rise to 5,000 MW by 2035. With an annual increase of 1,000 MW in power demand and limited scope for large hydropower projects, thermal power is the only viable option,” Himanta adds.
The policy provides various incentives to draw private investment, such as free land distribution, government-provided water, and enhanced road connectivity. The state will obtain power via a competitive bidding process, but it also retains the option to invest in up to 27 percent equity in private projects if necessary. Every 1,800 MW power station is projected to need an investment of about Rs 20,000 crore.
Land has been located in Rupsi, Dhubri, and Chapor, with each thermal power plant needing approximately 300 bighas. Sarma mentioned that electricity produced from these facilities could be sold to nearby states and nations.
In addition to the policy, the Cabinet sanctioned a Rs 300 crore focused subsidy for APDCL to offer tariff relief to consumers in the Jeevan Dhara and Domestic-A categories during the 2025–26 fiscal year.
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A further general subsidy of Rs 200 crore was approved to avoid any rise in retail electricity prices. These funds will reimburse the discom for a Re 1/unit rate reduction implemented in April.