The Cabinet Committee on Economic Affairs Wednesday approved the revised cost estimate of Rs 6,700 crore for the North Eastern Region Power System Improvement Project (NERPSIP) — a project which the government said was “a major step towards economic development” of the region through “strengthening of intrastate transmission and distribution systems”.
NERPSIP is being implemented through the Public Sector Unit Powergrid, in association with beneficiary states Assam, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura. Once commissioned — with December 2021 as target — it will be owned and maintained by the respective state utilities.
The project was initially approved in December 2014, as a Central sector plan scheme of the Power Ministry, and is partially funded by the World Bank. The Centre will cover the capacity building component for an additional Rs 89 crore.
The project is intended to “create a reliable power grid and improve NER states’ connectivity to the upcoming load centers, and thus extend the benefits of the grid connected power to all categories of consumers of beneficiaries” in the region, the government said. “The scheme shall also increase the per capita power consumption of these states, and shall contribute to the total economic development of the northeastern region.”