North Eastern Region Power System Improvement Project

North Eastern Region Power System Improvement Project

The Cabinet Committee on Economic Affairs 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.  This is a major step towards economic development of North Eastern Region through strengthening of Intra - State Transmission and Distribution systems.

What is NERPSIP?

North Eastern Region Power System Improvement Project (NERPSIP) is a Central Sector Plan Scheme of the Ministry of Power. The Scheme was initially approved in 2014. The scheme is being funded with the assistance of the World Bank fund and by the Government of India through the Budget support of the Ministry of Power on a 50:50 basis.

What is the Objective of NERPSIP?

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.

What are the Significance of NERPSIP?

The major significances of the scheme are mentioned below.

• 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.
• Hiring local manpower is generating a lot of employment for skilled and unskilled manpower of North-Eastern Region.

• Assam, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura and is targeted to be commissioned by December 2021.

Implementation of the NERPSIP

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.