CCEA approves revised cost for Arunachal Pradesh, Sikkim transmission upgrade
- March 17, 2021
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved the Revised Cost Estimate (RCE) of “Comprehensive Scheme for Strengthening of Transmission & Distribution in Arunachal Pradesh and Sikkim.”
The revised cost estimate is Rs.9,219.32 crore and the scheme is being implemented by Power Grid Corporation of India Ltd (PGCIL), in associated with the state governments of Sikkim and Arunachal Pradesh.
Completion
The scheme is targeted to be commissioned in a phased manner by December 2021 for awarded scope of works and 36 months from RCE approval (which is March 16, 2021) for un-awarded packages. After commissioning, the created power transmission and distribution system will be owned and maintained by the respective state utilities.
Objective
The main objective of the scheme is the government’s commitment to economic development of Arunachal Pradesh and Sikkim, and to strengthen the intrastate transmission and distribution infrastructure in the states by providing grid connectivity to remote distant locations.
Socio-economic impact
Implementation of this scheme will create a reliable power grid and improve states’ connectivity to the upcoming load centers, 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 & maintenance, generating considerable additional local employment opportunities for States.
Related Story: NERSIP targeted for completion by December 2021
Pasighat Proclamation on Power
The roadmap for development of power sector specifying the need for strengthening of overall transmission, sub-transmission, and distribution system of the northeastern region (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 comprehensive scheme for strengthening of transmission, sub-transmission, and distribution system was evolved by CEA in consultation with PGCIL and states of NER, and Sikkim.
Under the subject project, implementation of the scheme in six states of NER, namely Assam, Meghalaya, Tripura, Mizoram, Manipur, and Nagaland was envisaged through funding from World Bank / Government of India. Further, implementation in Sikkim and Arunachal Pradesh was envisaged under a separate project funded by GoI.
Original sanction and cost
Sanction for ‘Comprehensive Scheme for strengthening of Transmission & Distribution in Arunachal Pradesh and Sikkim’ was accorded in October 2014 at an estimated cost of Rs.4,754.42 crore (April 2013 price level, including consultancy fees) with the completion schedule of 48 months from the date of release of first installment (post-investment approval). The total outlay (including consultancy fees) for Arunachal Pradesh was Rs.3,199.45 crore and that for Sikkim was Rs.1,554.97 crore. The entire cost of the project will be borne by the Government of India through the Plan Scheme of the Union power ministry.
