CCEA okays revised cost estimate of NE Region Power System Improvement Project for six States
File photo of a power plant in Assam

CCEA okays revised cost estimate of NE Region Power System Improvement Project for six States

New Delhi, December 17, 2020

The Cabinet Committee on Economic Affairs (CCEA) on Wednesday gave its approval for the Revised Cost Estimate (RCE) of the North Eastern Region Power System Improvement Project (NERPSIP) at an estimated cost of Rs. 6,700 crore.

This is a major step towards economic development of the North Eastern Region through the strengthening of Intra-State Transmission and Distribution systems, an official press release said.

The scheme is being implemented through PowerGrid, a public sector undertaking under the Ministry of Power in association with six North Eastern States of Assam, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura.

It is targeted to be commissioned by December 2021. After commissioning, the project will be owned and maintained by the respective State Utilities, the release said.

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 & Distribution Infrastructure, it said.

"Implementation of this scheme will create a reliable power grid and improve NER States' connectivity to the upcoming load centres to extend the benefits of the grid-connected power to all categories of consumers.

"It will also increase the per capita power consumption of these States, and contribute to the total economic development of the North-Eastern Region.

"Implementing agencies are hiring a considerable number of local manpower during their construction works, generating a lot of employment for skilled and unskilled manpower.

"After completion, additional manpower will be required for Operation & Maintenance of these newly created assets as per standard norms, generating considerable additional employment opportunities," the release said.

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 the World Bank and by the Union Government through the Budget support of Ministry of Power on 50:50 basis except for the capacity-building component for Rs 89 crore, which will be entirely funded by the Government.

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