The road-map for development of power sector specifying the need for strengthening of overall Transmission, Sub-transmission and Distribution system of NER and Sikkim was brought out in the “Pasighat Proclamation on Power” released during the first Sectoral Summit of North Eastern Council at Pasighat in Arunachal Pradesh in January 2007.
Pursuant to recommendations of Pasighat summit, a Sub-Group was constituted under the Chairmanship of Member (Power System), Central Electricity Authority (CEA) on Transmission, Sub-transmission and Distribution related issues in North Eastern Region. Accordingly, a comprehensive scheme for strengthening of transmission, sub-transmission and distribution system was evolved by CEA in consultation with POWERGRID and States of North Eastern Region and Sikkim.
Under the subject project, implementation of the scheme in 6 states of NER viz. Assam, Meghalaya, Tripura, Mizoram, Manipur and Nagaland was envisaged through funding from World Bank / Govt. of India. Further, implementation in Sikkim & Arunachal Pradesh was envisaged under a separate project funded by Govt. of India.
Accordingly, sanction for ‘North Eastern Region Power System Improvement Project (NERPSIP) for Six (6) States (Assam, Manipur, Meghalaya, Mizoram, Tripura and Nagaland) for strengthening of the Intra-State Transmission and Distribution Systems (33kV and above)’ was accorded by Government of India vide Office Memorandum dated 1st December 2014 at an estimated cost of Rs. 5111.33 crore (Feb, 2014 Price level) with the completion schedule of 48 months from the date of release of first installment of funds. The total sanctioned cost of the scheme, Rs. 5111.33 crore comprises of Project Cost of Rs. 5022.33 Crore including consultancy fee @ 12 % of the executed cost and capacity building expenditure of Rs. 89.00 Crore. The scheme was approved to be funded by the Government of India through the Budget of Ministry of Power and The World Bank on 50:50 basis. The Capacity Building expenditure of Rs. 89.00 crore was approved to be funded entirely by Government of India through the Budget of Ministry of Power.
Sanction for ‘Comprehensive Scheme for strengthening of Transmission & Distribution in Arunachal Pradesh and Sikkim’ was accorded by Government of India vide Office Memorandum dated 10th October 2014 at an estimated cost of Rs. 4754.42 crore (Apr, 2013 Price level) with the completion schedule of 48 months from the date of release of first installment (post-investment approval). The total sanctioned cost of the scheme, Rs. 4754.42 crore comprises of Project Cost of Rs. 4208.96 Crore and consultancy fee of Rs.545.46 Crore calculated @ 12 % of the estimated executed cost as per following breakup:
The entire cost of the project will be borne by the Government of India through the Plan Scheme of Ministry of Power.