"CCEA (Cabinet Committee on Economic Affairs), chaired by Prime Minister Narendra Modi, has approved the Revised Cost Estimate (RCE) of North Eastern Region Power System Improvement Project (NERPSIP) at an estimated cost of Rs 6,700 crore," an official statement said.
AMP Capital and Sterlite Power will invest $150 million each on the development of 1,800 km of transmission lines.
The central government on Wednesday approved the revised cost estimate of Rs 6,700 crore for North Eastern Region Power System Improvement Project for six states to strengthen intra-state transmission and distribution systems.
“CCEA (Cabinet Committee on Economic Affairs), chaired by Prime Minister Narendra Modi, has approved the Revised Cost Estimate (RCE) of North Eastern Region Power System Improvement Project (NERPSIP) at an estimated cost of Rs 6,700 crore,” an official statement said.
This is a major step towards the economic development of the North Eastern Region through the strengthening of intra-state transmission and distribution systems. The scheme is being implemented through PowerGrid, a public sector undertaking (PSU) under Ministry of Power, in association with six beneficiary the north-eastern states – Assam, Manipur, Meghalaya, Mizoram, Nagaland and Tripura, and is targeted to be commissioned by December 2021.
After commissioning, the project will be owned and maintained by the respective north-eastern state utilities. The main objective of the project is the government commitment for the total economic development of North Eastern Region and to strengthen the intra-state transmission and distribution infrastructure in the region.
Implementation of this scheme will create a reliable power grid and improve NER states’ connectivity to the upcoming load centres, and thus extend the benefits of the grid-connected power to all categories of consumers of beneficiaries in the north-eastern region.
The scheme will also increase the per capita power consumption of these states, and contribute to the total economic development of the region. Implementing agencies are hiring a considerable number of local manpower during their construction work, generating a lot of employment for skilled and unskilled manpower of north-eastern region.
After completion, additional manpower will be required for the operation and maintenance of these newly created assets as per standard norms, generating considerable additional employment opportunities for the region.
The scheme was initially approved in December 2014 as a Central Sector Plan Scheme of Ministry of Power and is being funded with the assistance of World Bank fund and by the government through the Budget support of the ministry on 50:50 basis (World Bank: Gol) except for the capacity building component for Rs 89 crore, which will be entirely funded by the Centre.