Cabinet approves revised cost for Transmission & distribution scheme in Arunachal Pradesh & Sikkim

New Delhi: The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, in a major step towards economic development of the states of Arunachal Pradesh and Sikkim through the strengthening of intrastate transmission and distribution systems has approved the revised cost estimate (RCE) of a comprehensive scheme for strengthening of transmission & distribution in Arunachal Pradesh and Sikkim at an estimated cost of Rs 9,129.32 crore.

The scheme is being implemented through Power Grid in association with Sikkim and Arunachal Pradesh and is targeted to be commissioned in a phased manner by December 2021 for the awarded scope of works and 36 months from RCE approval for un-awarded packages. After commissioning, the created transmission and distribution system will be owned and maintained by the respective state utilities.

The main objective of the scheme is the government's commitment to the total economic development of Arunachal Pradesh and Sikkim and to strengthen the intra-state transmission and distribution infrastructure in the states by providing grid connectivity to remote distant locations.

ALSO READ: 

1. Govt makes India's new Central Transmission Utility official, relieves PGCIL of CTU role

2. 5 states secure additional borrowing from govt after reducing AT&C losses, ACS-ARR gap

Implementation of this scheme will create a reliable power grid and improve states' connectivity to the upcoming load centres, and thus extend the benefits of the grid-connected power to the villages and towns including the remote and border areas and all categories of consumers of beneficiaries in Arunachal Pradesh and Sikkim.
The scheme shall also increase the per capita power consumption of these States, and shall contribute to the total economic development.

Implementing agencies are hiring a considerable number of local manpower during their construction works, generating a lot of employment for skilled and unskilled local manpower.

Further, after completion, since the assets are new establishments, additional local manpower will be required for operation and maintenance as per standard norms, generating considerable additional local employment opportunities for states.

Backdrop

The scheme was initially approved in December 2014 as a central sector plan scheme of the Ministry of Power and the entire cost of the scheme will be borne by the government through the planning scheme of the Ministry of Power.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Telegram. Join PSU Watch Channel in your Telegram and stay updated)