The Cabinet Committee on Economic Affairs approved this scheme, an official statement said.
"The intra-state transmission and distribution systems in the North-Eastern states are very weak. Presently, 5 out of 20 districts in Arunachal Pradesh are connected to the transmission network," the statement said.
It is necessary to strengthen the power transmission for proper voltage management and lower distribution losses in both the states.
The project would be implemented by Power Grid Corporation with its consultancy fee of 12 per cent of the execution cost.
The DONER (Ministry of Development of Northeastern Region) has conveyed its inability to finance the project due to budgetary constraints, the statement said, adding that it will now be taken up through a central sector scheme under Ministry of Power.
The project is to be implemented within 48 months from the first fund release to Power Grid Corporation.
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