North Eastern Region Power System Improv

Q. Why is this in news?

The Cabinet Committee on Economic Affairs has approved the Revised Cost Estimate (RCE) of Rs. 6,700 crore for the North Eastern Region Power System Improvement Project (NERPSIP).

• This is a major step towards economic development of the North Eastern Region through strengthening of Intra - State Transmission and Distribution systems.

Q. What is North Eastern Region Power System Improvement Project? 

The Scheme was initially approved in December 2014 as a Central Sector Scheme of the Ministry of Power.
Q. What is funding mechanism for it? 

The assistance of the World Bank fund and by the Government of India through the Budget support of the 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 of India.

Q. What is implementing body for it?  

The scheme is being implemented through Power Grid Corporation of India Limited (POWERGRID) 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.

Q. What are the objective of Project? 

• Government’s commitment for the total economic development of the North Eastern Region and to strengthen the Intra-State Transmission & Distribution Infrastructure in the North East Region.

Q. What are its Significance? 

• Implementation of this scheme will 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 North Eastern Region.
• The scheme shall also increase the per capita power consumption of these States, and shall contribute to the total economic development of the North-Eastern Region.