'Aggressive' thermal power policy gets Cabinet nod; free land, state equity on offer
Chief Minister said the new policy is a response to the state’s rapidly rising power needs, which are expected to hit 5,000 MW by 2032
A file image of Assam CM Himanta Biswa Sarma.
Guwahati, May 6: With Assam’s energy demand projected to surge sharply in the coming years, the state government is gearing up to transform Assam into a regional hub for thermal power generation.
In a decisive move, the cabinet on Monday night approved the Assam Thermal Power Generation Product Promotion Policy 2025, aimed at drawing large-scale investments into the sector.
Chief Minister Himanta Biswa Sarma, addressing the press at Lok Sewa Bhawan on Tuesday, said the new policy is a response to the state’s rapidly rising power needs, which are expected to hit 5,000 MW by 2032, increasing at a rate of 1,000 MW per year.
“To meet this future demand, 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 here,” Sarma said.
As per the policy, Assam will purchase electricity from these plants on a tender basis. Once the state’s needs are met, the remaining power can be sold to neighbouring states such as West Bengal, or exported to countries like Bhutan and Nepal, he added.
“The idea is to create a thermal power generation hub not just for Assam, but for the entire region,” Sarma said.
To make investment in Assam more viable, the policy also allows for government equity participation of up to 27% in proposed power plants.
“If a company says banks are reluctant to sanction such large loans, the state will step in, much like it did with Namrup Fertilizer Plant, where we took a 40% stake,” he added.
The state has already earmarked potential 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,” the Chief Minister said.
In response to questions about energy sources, Sarma confirmed that the upcoming thermal plants will run on coal.
“We’re in talks with the Centre to access coal mines in Jharkhand and West Bengal. The model will mirror NTPC’s operation in Salakati, Bongaigaon, since Assam’s own coal reserves, like those in Margherita, are insufficient,” he said.
Pressed on whether the state might instead pursue hydroelectric power, the Chief Minister was candid. “Assam doesn’t have the luxury. Our stretch of the Brahmaputra is a flat river — unlike Arunachal Pradesh or Bhutan, which have natural elevation for hydro projects. We already have plants in Kopili and Karbi Langpi, but scaling hydro generation here is simply not feasible.”
With a comprehensive plan and major incentives on the table, the state government is positioning Assam as a serious player in the thermal energy sector, hoping to power not just its own future, but that of the wider northeastern region.