Guwahati, May 6: 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.
Addressing a press conference here on Tuesday, Chief Minister Himanta Biswa Sarma said the policy aims to ensure energy self-sufficiency and boost private sector participation in the power sector.
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.
“In 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,” Sarma said.
The policy offers several incentives to attract private investment, including free land allocation, government-supplied water, and improved road connectivity. While the state will procure power through a competitive tendering process, it also reserves the right to acquire up to 27% equity in private projects if needed. Each 1,800 MW power plant would require an estimated investment of Rs 20,000 crore.
Land has already been identified in Rupsi, Dhubri, and Chapor, and each thermal power plant will require around 300 bighas. Sarma noted that power generated from these plants could also be exported to neighbouring states and countries.
Alongside the policy, the Cabinet also approved a Rs 300 crore targeted subsidy for APDCL to provide tariff relief to consumers under the Jeevan Dhara and Domestic-A categories in the 2025–26 fiscal. An additional Rs 200 crore general subsidy was sanctioned to prevent any increase in retail power tariffs. These funds will compensate the discom for a Re 1/unit tariff waiver introduced in April.
The chief minister also hinted at a review of electricity tariffs in November.
In another decision, the Cabinet cleared the release of Rs 244 crore for acquiring land to upgrade the 220 KV grid substation at Sarusajai in Guwahati, as part of broader efforts to strengthen power infrastructure.
With the new policy and accompanying incentives, the Assam government aims to position itself as a key power producer in the region, responding to the state’s growing energy demands and promoting long-term industrial growth.
