June 10, 2013

Powergrid signed agreements with 6 NER states (Assam, Meghalaya, Mizoram, Manipur, Nagaland and Tripura) on 7th June 2013 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 Mr. P Uma Shankar, Secretary (Power), Government of India; Mr. RN Nayak, CMD, Powergrid and other senior officials from Ministry of Power, concerned state governments, the World Bank and Powergrid. These projects will improve grid connectivity and enhance states’ capability 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, Government of India. The total aggregate estimated project cost is Rs. 8,150.07 crores. World Bank has agreed to consider an umbrella loan covering 85% of the total project cost in three tranches of USD 500 million each. States shall be contributing 5% of the cost as equity. Government of India will provide the remaining 10% of the cost. Priority projects under tranche-1 of the World Bank loan are likely to be completed over the next four years. Followed by two more tranches with a gap of about one year each.