The Union Cabinet Committee on Economic Affairs on March 16, 2021, approved the Revised Cost Estimate of a Comprehensive Scheme in Arunachal Pradesh and Sikkim at an estimated cost of Rs. 9129. 32 crores.
As per the official statement, the Cabinet Committee on the Economic Affairs under the Chairmanship of PM Modi, in a major step towards the economic development of Sikkim and Arunachal Pradesh through the strengthening of Intra-State Transmission and Distribution Systems has given approval to the Revised Cost Estimate- RCE of Comprehensive Scheme for Strengthening of Transmission and Distribution in both the states.
Objective:
According to the statement issued by the Cabinet Committee on Economic Affairs, the main objective of the scheme is the Union Government's commitment to the total economic development of Sikkim and Arunachal Pradesh.
It also aims at strengthening the Inter-State Transmission and Distribution Infrastructure in Sikkim and Arunachal Pradesh by providing grid connectivity to remote distant locations.
Key Details:
• The government scheme is being implemented through POWERGRID under the Ministry of Power in association with Arunachal Pradesh and Sikkim.
• The Scheme is targeted to be commissioned in a phased manner by December 2021 for an awarded scope of works as well as 36 months from RCE approval for un-awarded packages.
• After the commissioning, the created distribution, and transmission system will be owned and managed by the utilities of both states.
• The Comprehensive scheme by the government was approved in December 2014 as a Central Sector Plan Scheme of the Power Ministry.
• The entire cost will be borne by the Centre through the Plan Scheme of the Power Ministry.
What are the benefits?
• The scheme will create a reliable power grid and will improve states’ connectivity to the upcoming load centers.
• It will extend the benefits of the grid-connected power to the towns and villages include the remote border areas of Sikkim and Arunachal Pradesh.
• The scheme will increase the per capita power consumption of the states and will also contribute to total economic development as the implementing agencies will be hiring local manpower during the construction works.
• After the completion, since the assets are the new establishments, additional local manpower will be required for maintenance and operation. It will in return generate considerable additional local employment opportunities for both states.
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