Cabinet approves revised cost estimate of Power Grid’s NERPSIP at Rs 6,700 cr

New Delhi: The Cabinet Committee on Economic Affairs has approved the revised cost estimate (RCE) of North Eastern Region Power System Improvement Project (NERPSIP) at Rs 6,700 crore on Wednesday. The scheme is being implemented through Power Grid in association with six north-eastern beneficiary states and is running behind schedule by three years. The project was originally scheduled to be commissioned in December 2018 and was expected to cost Rs 5,111.33 crore, according to a document sourced from the Ministry of Statistics and Programme Implementation. 

However, delay caused due to poor response and high prices quoted by bidders and delay in land handover and getting forest clearance has increased the cost estimate to Rs 6,700 crore The six North Eastern States that will benefitted due to the project include, Assam, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura. 

Power Grid's NERPSIP to be commissioned by December 2021

The project is now targeted to be commissioned by December 2021. After commissioning, the project will be owned and maintained by the respective North Eastern State Utilities. The scheme was first approved in December 2014 as a Central Sector Plan Scheme of the Ministry of Power. It is being funded with the assistance of World Bank fund and by the Central government 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 Centre.

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The main objective of the project is to ensure the economic development of the North-Eastern Region and to strengthen the Intra-State Transmission & Distribution Infrastructure in the North East Region, said an official statement.

NERPSIP will give North-East a reliable power grid

The implementation of this scheme will create a reliable power grid and improve NER states' connectivity to the upcoming load centres, and thus extend the benefits of grid-connected power to all categories of consumers in 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.

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