Thermal Policy Sparks ₹7,730 Cr Investment in Assam

The Assam government has approved the Assam Thermal Power Generation Product Promotion Policy 2025, aimed at attracting large-scale investments to expand the state's thermal power capacity and establish Assam as a key regional energy hub. As part of this initiative, the state Cabinet has cleared investment proposals totaling ₹7,730 crore.

Chief Minister Himanta Biswa Sarma highlighted Assam’s rapidly growing energy demand, which is expected to reach 5,000 MW by 2032, with an annual increase of 1,000 MW. The new policy offers attractive incentives for companies to set up thermal power plants, including free land, water supply, and road infrastructure. The state will procure power through a tender-based system, while surplus electricity may be sold to neighboring states or exported to Bhutan and Nepal.

The policy also allows the state government to hold up to 27% equity in projects. Key sites earmarked for development include Rupsi in Kokrajhar and Sapor in Goalpara. Establishing a large-scale thermal power plant with a capacity of 1,800 MW is estimated to require an investment of ₹20,000 crore and around 3,000 bighas of land. Assam is also in talks with the central government to secure coal supplies from mines in Jharkhand and West Bengal.

This energy push complements a broader industrial growth strategy stemming from MoUs signed during the Advantage Assam 2.0 summit. Major investments include ₹981 crore from Kohinoor Pulp & Paper Pvt Ltd and ₹827 crore from RPN Specialty Paper Pvt Ltd. Other approved projects include a ₹750 crore venture utilizing byproducts from the Numaligarh Refinery, as well as units for breweries, ethanol production, cement, battery manufacturing, and recycled plastics.

The state’s hospitality sector is also set to grow, with new developments such as Taj Gateway in Jagiroad and a Marriott hotel in Guwahati. To support these initiatives, Assam plans to build a six-lane highway connecting Guwahati to Umiam in Meghalaya, along with expressways for major corridors like Srirampur-Guwahati, Guwahati-Jorhat, and Jorhat-Dibrugarh within the next five years.

News by Rahul Yelligetti.