Power Grid signs pact with six NE states to improve network

Central transmission utility Power Grid Corporation today said it has signed an agreement with six North-eastern states, including Assam and Manipur, for improving the region's transmission network.

"Power Grid signed agreements with six NER (Northeastern Region) states (Assam, Meghalaya, Mizoram, Manipur, Nagaland and Tripura) to provide its technical and managerial support for improvement in their respective intra- state transmission and distribution systems," the company said in a statement.

The signing of the agreement took place in the presence of P Uma Shankar, Secretary (Power), R N Nayak, CMD, Power Grid and other senior officials from Ministry of Power, etc.

"These projects will improve grid connectivity and enhance states' capability to supply power to larger section of consumers with economy and reliability," the statement said.

Power Grid has been appointed as "Design cum Implementation Supervision Consultant" by Ministry of Power.

The total aggregate estimated project cost is Rs 8,150.07 crore, it added.

World Bank has agreed to consider an umbrella loan covering 85% of the total project cost in three tranches of $500 million each.

States shall be contributing 5% of the cost as equity. The remaining 10% of the cost will be provided by Centre, it further added.