Assam’s 2026-27 Budget bets big on pumped storage and green energy
The Assam government has announced a planned investment of Rs 77,353 crore in the power sector under the 2026-27 Budget, with a focus on expanding generation capacity, strengthening transmission and distribution infrastructure, and accelerating renewable energy deployment.
Presenting the Budget, Finance Minister Jayanta Mallabaruah identified “Energy Security and Green Growth” as one of the state’s six key priorities. The proposed investments will be financed through a combination of state funding, Centrally Sponsored Schemes, Externally Aided Projects and Public-Private Partnerships (PPPs).
Pumped storage
A major announcement in the Budget is the development of four Pumped Storage Power (PSP) projects with a combined capacity of 4,900 MW. The projects are expected to attract nearly Rs 27,100 crore of private investment.
The government said the PSP projects will support large-scale integration of renewable energy while improving grid flexibility and meeting the state’s future industrial power demand.
Renewable energy initiatives
The Budget highlighted the commissioning of the 70 MW solar power plant at Bilasipara as a milestone in Assam’s renewable energy programme.
Under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme, 1,695 solar-powered irrigation pumps have been installed across the state to support agricultural irrigation and reduce farmers’ energy costs.
To encourage further investment in renewable energy, the government has proposed extending the exemption from electricity duty on captive consumption of electricity generated from renewable energy sources for three more years, from April 1, 2026, to March 31, 2029.
Distribution infrastructure
The Budget said more than Rs 9,000 crore is being invested under the Revamped Distribution Sector Scheme (RDSS) to improve the efficiency, reliability and quality of electricity distribution across Assam.
The state also plans to develop an underground power distribution network in Guwahati to improve urban power infrastructure.
Irrigation and rural electrification
The government announced 34 solar-powered mobile lift irrigation schemes for remote and flood-prone areas.
In addition, it plans to re-engineer four medium irrigation projects, complete 615 minor irrigation schemes and restore 1,410 defunct irrigation schemes to improve agricultural productivity.
Energy among flagship priorities
Power sector initiatives have been included under the state’s flagship “Asthadash Mukutar Unnoyonee Maala” (Eighteen-Point Development Garland) programme.
These include “Shaktr Atmanirbharata, Seuj Bikashor Jatra”, which focuses on green energy development, and “Jalasinchan aru Krishir Samannay”, aimed at strengthening irrigation and agriculture. The programme also includes completion of the Har Ghar Jal initiative to provide piped drinking water to every household.
Other energy-related announcements
The Budget also outlined plans to expand the piped natural gas network across Assam and promote compressed biogas production.
Other infrastructure initiatives with implications for the power sector include the proposed Guwahati Metro Rail along the Ring Road, development of a semiconductor ecosystem with support from the Japan International Cooperation Agency (JICA), AssamSAT—India’s first state-owned Earth observation satellite system—and AI-based governance initiatives.
The total Budget outlay for 2026-27 is Rs 156,715 crore, of which Rs 89,052 crore has been allocated to the State’s Own Priority Development. The government said the proposed investments in energy and infrastructure are intended to strengthen Assam’s long-term energy security while supporting industrial growth and employment.
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