Cabinet approves Revised Cost Estimates for strengthening of Transmission and Distribution in Arunachal Pradash and Sikkim

New Delhi, 16 March 2021: The Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi, in a major step towards economic development of the States of Arunachal Pradesh and Sikkim through strengthening of Intra – State Transmission and Distribution systems has approved the Revised Cost Estimate (RCE) of Comprehensive Scheme for Strengthening of Transmission & Distribution in Arunachal Pradesh and Sikkim at an estimated cost of Rs. 9129.32 crore.

The scheme is being implemented through POWERGRID, a Public Sector Undertaking (PSU) under Ministry of Power in association with Sikkim and Arunachal Pradesh and is targeted to be commissioned in phased manner by December 2021 for awarded scope of works and 36 months from RCE approval for un-awarded packages. After commissioning, the created transmission and distribution system will be owned and maintained by the respective State Utilities.

The main objective of the scheme is Government commitment for the total economic development of Arunachal Pradesh and Sikkim and to strengthen the Intra-State Transmission & Distribution Infrastructure in the states by providing grid connectivity to remote distant locations.

Implementation of this scheme will create a reliable power grid and improve States’ connectivity to the upcoming load centers, and thus extend the benefits of the grid connected power to the villages and towns including the remote and border areas and all categories of consumers of beneficiaries in Arunachal Pradesh and Sikkim.

The scheme shall also increase the per capita power consumption of these States, and shall contribute to the total economic development.

Implementing agencies are hiring a considerable number of local manpower during their construction works, generating a lot of employment for skilled and unskilled local manpower.

Further after Completion, since the assets are new establishments, additional local manpower will be required for Operation & Maintenance as per standard norms, generating considerable additional local employment opportunities for States.


The scheme was initially approved in December, 2014 as a Central Sector Plan Scheme of Ministry of Power and the entire cost of the scheme will be borne by the Government of India through the Plan Scheme of Ministry of Power.