North Eastern Region Power System Improvement Project

North Eastern Region Power System Improvement Project (NERPSIP) originally got approval as a Central Sector Plan in December 2014. It is a scheme of the Union Ministry of Power. The aim of this project is to increase the delivery of electricity at the boundaries of the power distribution network in the participating states in the North Eastern Region. It is partially funded by the World Bank.

Key Points for UPSC Prelims

  • World Bank fund and the Government of India fund the project on a 50:50 basis. The government provides funds through budgetary support.
  • However, the capacity building component for Rs 89 crore is being entirely funded by the Government of India.
  • The scheme is being implemented through Power Ministry PSU- POWERGRID, in association with six beneficiary North Eastern States namely, Manipur, Assam, Meghalaya, Nagaland, Mizoram, and Tripura.
  • The project is expected to be commissioned by December 2021. After commissioning, it will be maintained and owned by the respective North-Eastern State facilities.

Pasighat Proclamation on Power

The idea or roadmap for NERPSIP was brought out in the “Pasighat Proclamation on Power” which was released in January 2007 during the 1st Sectoral Summit of North Eastern Council at Pasighat, Arunachal Pradesh.

According to recommendations of the Pasighat summit, a Sub-Group was constituted. After which a 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.

Accordingly, sanction for NERPSIP for 6 States -Manipur, Assam, Tripura, Meghalaya, Mizoram, and Nagaland was accorded by the Indian government at an estimated cost of Rs. 5111.33 crore.

Along with NERPSIP, the government approved the ‘Comprehensive Scheme for the strengthening of Transmission & Distribution in Arunachal Pradesh and Sikkim’ at an estimated cost of Rs. 4754.42 crore.

CCEA approves revised cost estimate of NERPSIP

CCEA has recently approved the revised cost estimate for NERPSIP. The new cost estimate of the project is now Rs 6,700 crore.

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