North Eastern Region Power System Improvement Project

North Eastern Region Power System Improvement Project

Why in News?

• The Cabinet Committee on Economic Affairs, chaired by Prime Minister 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.

Purpose

• This is a major step towards economic development of North Eastern Region through 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 North Eastern States namely, 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.

Objective

• The main objective of the project is Government commitment for the total economic development of North Eastern Region and to strengthen the Intra-State Transmission & Distribution Infrastructure in the North East Region.

Background:

• 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 of India through the Budget support of Ministry of Power on 50:50 basis (World Bank: Gol)
• Except for the capacity building component for Rs 89 crore, which will be entirely funded by the Government of India (Gol).