A loan worth $231 million (£170m) has been approved by the Asian Development Bank (ADB) for the construction of a hydropower plant in India.

It will support the development of the Lower Kopili Hydroelectric Power plant, with a total capacity of 120MW, in Central Assam.

The project will double the hydropower generation capacity of the Assam Power Generation Corporation.

It is the third and largest tranche of the $300 million (£221m) Assam Power Sector Investment Programme approved by the ADB in 2014.

ADB Principal Energy Specialist Len George said: “This project will produce clean energy and help address the growing demand for electricity in the state of Assam. It will also help state power companies reduce their dependence on expensive electricity from fossil fuel sources.

“Providing reliable power supply will promote economic growth, create employment opportunities and attract investments.”

An additional $2 million (£1.48m) project grant from the ADB’s Japan Fund for Poverty Reduction will finance community-based disaster resilience initiatives and resource management.