The Cabinet Committee on Economic Affairs has recently given the green light for a Revised Cost Estimate (RCE) of Rs. 6,700 crore for the North Eastern Region Power System Improvement Project (NERPSIP). This move signifies a crucial stride towards the economic growth of the North Eastern Region by fortifying the Intra-State Transmission and Distribution systems.
North Eastern Region Power System Improvement Project: An Overview
Originally approved in December 2014, NERPSIP is a Central Sector Scheme under the purview of the Ministry of Power. Backed by the World Bank and the Government of India, it operates on a 50:50 funding basis via the budgetary support offered by the Ministry of Power. However, the capacity building component worth Rs. 89 crore stands as an exception, with full funding from the Government of India.
Implementation Partners
The Power Grid Corporation of India Limited (POWERGRID) is the key entity responsible for implementing the scheme, working conjointly with six beneficiary North Eastern States, namely Assam, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura. The aim is to have the project operational by December 2021. POWERGRID, a ‘Maharatna’ Company functioning under the Ministry of Power, is tasked with the planning, implementation, operation, and upkeep of the Inter-State Transmission System (ISTS).
Maintenance of the Project
Once up and running, the project’s ownership and maintenance will be relegated to the respective North Eastern State Utilities.
Project Objectives
The government’s commitment to the comprehensive economic development of North Eastern Region takes shape through this initiative. The goal is to strengthen the Intra-State Transmission & Distribution Infrastructure in this region.
Significance of the Project
The successful rollout of this scheme will pave the way for a reliable power grid and bolster NER States’ connectivity to upcoming load centers. This, in turn, will extend the advantages of the grid-connected power to all consumer categories in the North Eastern Region. Upping the per capita power consumption of these states, the scheme is set to contribute significantly to the overall economic development of the North-Eastern Region. Additionally, the project is creating numerous job opportunities for both skilled and unskilled manpower within the region.
Other Initiatives Benefitting North Eastern States
Apart from NERPSIP, there are several other schemes aimed at promoting the growth of the North East. The North-East Industrial Development Scheme (NEIDS) incentivizes the MSME Sector to generate employment in these states.
The International Tourism Mart (ITM), held annually, aims to highlight the largely untapped tourism potential of the North East region to domestic and international markets. A dedicated 10% of the Ministry of Tourism’s plan allocation goes towards this region. Plans are also underway for an NER Tourism Mart to further promote regional tourism.
The National Bamboo Mission promotes comprehensive growth of the bamboo sector through an area-based, regionally differentiated strategy. It focuses on expanding the area under bamboo cultivation and marketing.