Powergrid signed agreements with six NER states (Assam, Meghalaya, Mizoram, Manipur, Nagaland and Tripura) recently to provide its technical and managerial support for improvement in their respective intra-state transmission and distribution systems.
The signing took place in the presence of P Uma Shankar, Secretary (Power), Government of India; RN Nayak, CMD, Powergrid and other senior officials from Ministry of Power, concerned state governments, World Bank and Powergrid. These projects will improve grid connectivity and enhance states’ capabilities to supply power to larger section of consumers with economy and reliability. Powergrid has been appointed as “Design cum Implementation Supervision Consultant” by Ministry of Power.
The total aggregate estimated project cost is Rs 8150.07 crore. World Bank has agreed to consider an umbrella loan covering 85 per cent of the total project cost in three tranches of $500 million each. States shall be contributing five per cent of the cost as equity.
The remaining 10 per cent of the cost will be provided by government.
Priority projects under tranche-1 of the World Bank loan are likely to be completed over the next four years, to be followed by two more tranches, with a gap about one year each.