Cabinet approves revised cost estimates of comprehensive scheme for Arunachal Pradesh, Sikkim

The Cabinet Committee on Economic Affairs on Tuesday approved the Revised Cost Estimate (RCE) of a comprehensive scheme for strengthening 'Transmission and Distribution' in Arunachal Pradesh and Sikkim at an estimated cost of Rs. 9129.32 crore.

The main objective of the scheme is Government commitment for 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, according to a statement issued by the Cabinet Committee on Economic Affairs (CCEA) on Tuesday.

"The Cabinet Committee on Economic Affairs, 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 Intra - State Transmission and Distribution systems have approved the Revised Cost Estimate (RCE) of Comprehensive Scheme for Strengthening of Transmission and Distribution in Arunachal Pradesh and Sikkim at an estimated cost of Rs. 9129.32 crore," the statement read.

The scheme is being implemented through POWERGRID, a Public Sector Undertaking (PSU) under the Ministry of Power in association with Sikkim and Arunachal Pradesh and is targeted to be commissioned in a phased manner by December 2021 for an 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.

According to the statement, 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 and maintenance as per standard norms, generating considerable additional local employment opportunities for States.

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 of India through the Plan Scheme of the Ministry of Power.

( With inputs from ANI )